80.2K

Verified Solution

Link Copied!

PLEASE HELP

Exercise 13-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016 Common stock-$25 par value, 60,eee shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,880, eee 89, eee 375,000 $1,455,000 In year 2017, the following transactions affected its stockholders' equity accounts: Jan. 2 Purchased 4,000 shares of its own stock at $25 cash per share. Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 1,6ee of its treasury shares at $30 cash per share. Aug 27 Sold 2,000 of its treasury shares at $20 cash per share. Sept. Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $62,000 credit balance (from net income) in the Income Summary account to Retained Prnings, Required: 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions for 2017 Vinsaction lit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions for 2017 View transaction list Journal entry worksheet 3 > Record the purchase 4,000 shares of its own common stock for $25 cash per share. Note: Enter debits before credits. Date Jan 02 Debit Credit General Journal Treasury stock, ummon Cash 100,000 100,000 Record entry Clear entry View general Journal Required 1 Required 2 Required 3 Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2017. (Amounts to should be indicated by a minus sign.) ALEXANDER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Common stock - $25 par value $ 1,000,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 1,080,000 Less cost of treasury stock (10,000) Total stockholders' equity $ 2,150,000

Answer & Explanation Solved by verified expert

See Answer