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2. The stockholders' equity of TVX Company at the beginning of the day on February 5 follows: Common stock -- $10 par value, 150,000 shares

2. The stockholders' equity of TVX Company at the beginning of the day on February 5 follows:

Common stock -- $10 par value, 150,000 shares authorized, 67,000 shares issues and outstanding

670,000

Paid-in capital in excess of par value, common stock

525,000

Retained Earnings

675,000

Total Stockholders' Equity

1,870,000

On February 5, the directors declare a 12% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock's market value is $39 per share on February 5 before the stock dividend. The stock's market value is $35.00 per share on February 28.

1. Prepare entries to record the dividend declaration and its distribution.

2. One stockholder owned 800 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholder's shares immediately before and after the stock dividend of February 5.

3. Compute the total market value of the investor's shares in part 2 as of February 5 and February 28.

Feb 5

Retained Earnings

Common stock dividend distributable

Paid in capital in excess of par value, common stock

Declared 12% stock dividend

Feb 28

Common stock dividend distributable

Common stock

Distributed common stock dividend declared on Feb 5

2.) One stockholder owned 550 shares on February 5 before the dividend. Compute the book value per share and total book value of this stockholders shares immediately before and after the stock dividend of February 5. (Round your "Book value per share" answers to 3 decimal places.)

3.) Compute the total market value of the investors shares in part 2 as of February 5 and February 28.

Alexander Corporation reports the following components of stockholders equity on December 31, 2015:

Common stock$25 par value, 50,000 shares authorized, 30,000 shares issued and outstanding

$

850,000

Paid-in capital in excess of par value, common stock

68,000

Retained earnings

354,000

Total stockholders equity

$

1,272,000

In year 2016, the following transactions affected its stockholders equity accounts.

Jan.

2

Purchased 3,400 shares of its own stock at $25 cash per share.

Jan.

7

Directors declared a $1.50 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.

Feb.

28

Paid the dividend declared on January 7.

July

9

Sold 1,360 of its treasury shares at $30 cash per share.

Aug.

27

Sold 1,700 of its treasury shares at $20 cash per share.

Sept.

9

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 $56,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:

1.

Prepare journal entries to record each of these transactions for 2017.

Date

Account Title

Debit

Credit

Jan. 2

Treasury stock, common

Cash

Jan. 7

Retained earnings

Common dividend payable

Feb. 28

Common dividend payable

Cash

Jul. 9

Cash

Treasury stock, common

Paid-in capital, treasury stock

Aug. 27

Cash

Paid in capital, treasury stock

Retained earnings

Treasury stock, common

Paid-in capital, treasury stock can never have an ending debit balance

Date

Account Title

Debit

Credit

Sep. 9

Retained earnings

Common dividend payable

Oct. 22

Common dividend payable

Cash

Dec. 31

Income summary

Retained earnings

Prepare a statement of retained earnings for the year ended December 31, 2017

Alexander Corporation

Statement of Retained Earnings

For Year Ended December 31, 2017

Retained earnings, December 31, 2015

Add: Net income

Dec. 31

Less: Cash dividends declared

Jan. 7 + Sep. 9

Less: Treasury stock reissuances

Aug. 27

Retained earnings, December 31, 2016

Prepare the stockholders equity section of the companys balance sheet as of December 31, 2016

Alexander Corporation

Statement of Retained Earnings

For Year Ended December 31, 2017

Common stock authorized,

Paid-in capital in excess of par value, common stock

Retained earnings

Less: Treasury stock

Total stockholders equity

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