4. The stockholders' equity section of Brentwood Brands' 2015 balance sheet is presented below (Click the icon to view the data.) During 2016, Brentwood completed the following transactions: 2 (Click the icon to view the transactions.) Read the requirements Requirement a. Prepare the journal entries necessary to record the transactions. November 9, 2016: Purchased 500 shares of its own stock to be held in the treasury. The cost was $104 per share. (Record debits first, then credits. Exclude explanations from any journal entries.) Account November 9 (2) ||(4) November 17, 2016: Declared and paid a cash dividend of $6.25 per share. Account November 17 November 30, 2016: Sold 300 treasury shares for $94 per share. Account November 30 (10) (12) December 31, 2016: Reported $75,000 net income for the year. December 31 Account (13) (14) (15) (16) Requirement b. Based on the information provided, prepare the statement of stockholders' equity and the stockholders' equity section of the balance sheet for Brentwood Brands at December 31, 2016. Start by preparing the statement of stockholders' equity. (If a box is not used in the statement, leave the box empty; do not enter a zero. Use parentheses or a minus sign for numbers to be subtracted.) Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity Account Beginning balances November 9 transaction November 17 transaction November 30 transaction December 31 transaction Ending balances Now complete the stockholders' equity section of the balance sheet. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet. Use parentheses or a minus sign for numbers to be subtracted.) Stockholders' Equity Balance |(18) (17) (19) Total Contributed Capital (20) Total (21) Total Stockholders' Equity 1: Data Table Stockholders' Equity Common Stock - no par, 100,000 shares authorized, 2,000 shares issued and outstanding Retained Earnings $ 80,000 520,000 Less: Cost of Treasury Stock Total Stockholders' Equity $ 600,000 2: Transactions . November 9, 2016: Purchased 500 shares of its own stock to be held in the treasury. The cost was $104 per share. . November 17, 2016: Declared and paid a cash dividend of $6.25 per share. November 30, 2016: Sold 300 treasury shares for $94 per share. December 31, 2016: Reported $75,000 net income for the year 3: Requirements a. Prepare the journal entries necessary to record the transactions. b. Based on the information provided, prepare the statement of stockholders' equity and the stockholders' equity section of the balance sheet for Brentwood Brands at December 31, 2016
