Question
Alexander Corporation reports the following components of stockholders equity on December 31, 2013: Common stock$25 par value, 70,000 shares authorized, 44,000 shares issued and outstanding
Alexander Corporation reports the following components of stockholders equity on December 31, 2013:
Common stock$25 par value, 70,000 shares authorized, 44,000 shares issued and outstanding | $ | 1,100,000 | ||
Paid-in capital in excess of par value, common stock | 88,000 | |||
Retained earnings | 389,000 | |||
Total stockholders equity | $ | 1,577,000 | ||
In year 2014, the following transactions affected its stockholders equity accounts. |
Jan. | 2 | Purchased 4,400 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 1,760 of its treasury shares at $30 cash per share. |
Aug. | 27 | Sold 2,200 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 $66,000 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 2014.
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