90.2K

Verified Solution

Link Copied!

Feb 15 Purchased 3,000 shares of treasury stock at $3 per share. Mar 8 Sold 2,000 shares of treasury stock for $6 per share. Sep 28 Declared and distributed a 5% stock dividend on the 124,000 shares of outstanding common stock. The market value of Relaxation's common stock was $7 per share. 1. Record the transactions in the journal. Explanations are not required. 2. Prepare the stockholders' equity section of the balance sheet at December 31, 2018, assuming the company earned $80,000 of net income during the year. The balance sheet of Relaxation, Inc., at December 31, 2017, reported 950,000 shares of $1 par common stock authored with 125,000 shares issued and outstanding Paid-in capital in excess of par-com had a balance of $315,000. Retained eamings had a balance of $150,000. During 2018, the company completed the following selected transactions (Click the icon to view the transactions.) Read the vand Requirement 1. Record the transactions in the journal. Explanations are not required (Record debits first, then credits Exclude explanations from any journal erdines) Feb 15 Purchased 3,000 shares of treasury stock at $3 per share Feb Date 150 Journal Entry Accounts Debit Credit ne Cash Ces Common stock nce the Dividends payable, common 950, 00. [ requ Dividends payable, preferred Paid-in capital, treasury stock ement Paid-in capital in excess of par-common e not i Purch Retained earnings ate 15 Treasury stock De

Answer & Explanation Solved by verified expert

See Answer