Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

2.

Prepare a statement of retained earnings for the year ended December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.)

3.

Prepare the stockholders equity section of the companys balance sheet as of December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Other Assurance Services

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser

10th Canadian Edition

0131296159, 978-0131296152

More Books

Students also viewed these Accounting questions

Question

Differentiate between strategic planning and budgeting.

Answered: 1 week ago

Question

=+6. Did your solution clearly highlight the main consumer benefit?

Answered: 1 week ago