Chapter 10, Problem 10.79AP

(Learning Objectives 2, 3, 4: Account for stock issuance, dividends, and treasury stock) Jubilee Jewelry Company reported the following summarized balance sheet at December 31, 2018:

Assets
Current assets		$ 32,200
Property and equipment, net		89,000
Total assets		$ 121,200
Liabilities and Equity
Liabilities	$ 36,500
Stockholders’ equity:
$0.70 cumulative preferred stock, $5 par, shares issued	4,000
Common stock, $6 par, 6,700 shares issued	40,200
Paid-in capital in excess of par—common	18,500
Retained comings	22,000
Total liabilities and equity	$ 121,200

During 2019, Jubilee Jewelry completed these transactions that affected stockholders’ equity:

Feb 13	Issued 5,400 shares of common stock for $9 per share.
Jun 7	Declared the regular cash dividend on the preferred stock.
24	Paid the cash dividend.
Aug 9	Declared and distributed a 20% stock dividend on the common stuck. Market price of the common stock was $12 per share.
Oct 26	Reacquired 600 shares of common stock as treasury stock, paying $14 per share.
Nov 20	Sold 300 shares of the treasury stock for $18 per share.
Dec 31	Declared a cash dividend of $0.25 per share on the outstanding common stock; dividends will he paid in January, 2020.

Requirements

1. Journalize Jubilee Jewelry's transactions. Explanations are not required.

2. Prepare the company’s stockholders’ equity section of the balance sheet at December 31, 2019. Net income for 2019 was $23,000.