The stockholders' equity section of Bellwood Brands' 2017 balance sheet follows: Stockholders' Equity Common Stock - no

Question:

The stockholders' equity section of Bellwood Brands' 2017 balance sheet follows:

Stockholders' Equity

Common Stock - no par, 100,000 shares authorized, 1,000 shares issued and outstanding ...... $90,000

Retained Earnings ..................................................................................................................................360,000

Less: Cost of Treasury Stock ................................................................................................................. 0

Total Stockholders· Equity ..................................................................................................................$450,000

During 2018, Bellwood completed the following transactions:

• November 9: Purchased 200 shares of its own stock 10 be held in the treasury. The cost was $90 per share.

• November 17: Declared and paid a cash dividend of $5 per share.

• November 30: Sold I 00 treasury shares for $80 per share.

• December 31: Reported $50,000 net income for the year.

Required

a. Prepare the journal entries necessary to record those transactions.

b. Based on the information provided, prepare the statement of stockholders' equity and the stockholders' equity section of the balance sheet for Bellwood Brands at December 31, 2018.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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