The stockholders’ equity section of Bellwood Brands’ 2021 balance sheet follows:

During 2022, Bellwood completed the following transactions:

• November 9: Purchased 200 shares of its own stock to 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 100 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, 2022.

Transcribed Image Text:

Stockholders' Equity Common Stock - no par, 100,000 shares authorized, 1,000 shares issued and outstanding Retained Earnings Less: Cost of Treasury Stock Total Stockholders' Equity $ 90,000 360,000 0 $450,000