Cash Dividends , Treasury Stock, and Statement of Retained Earnings

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You must show your work in order to receive credit for this assignment. Problem 1 - Cash dividends, treasury stock, and statement of retained earnings- Widget Corporation operates in Tampa, Florida and reports the following stockholders' equity at December 31, 2019 Common stock-$25 par value. 70.000 shares authorized 42,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained eamings Total stockholders equity 1,050,00 $ 0 84.000 382,000 1,516,00 0 During 2020, the following transactions affected its stockholders' equity accounts. 11 Purchased 4,200 shares of its own stock at $25 cash per share. 2 11 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record 21 28 Paid the dividend declared on January 7 72 9 Sold 1.680 of its treasury shares at $30 cash per share. B 27 Sold 2.100 of its treasury shares at $20 cash per share. 9 9 Directors declared a 32 per share cash dividend payable on October 2260 the September 23 skokholters of record Paid the dividend declared on September 9 10 12 2 12 13 1 Closed the 564 000 credit balance (from net income in the income Summary account and Eaming - During 2020, the following transactions affected its stockholders' equity accounts. Purchased 4 200 shares of its own stock at $25 cash per share, Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record, 21 28 Paid the dividend declared on January 7. 71 9 Sold 1,680 of its treasury shares at $30 cash per share. 8/ 27 Sold 2,100 of its treasury shares at S20 cash per share. 9/ 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. 10 12 Paid the dividend declared on September 9. 22 U21 13 Closed the $64,000 credit balance (from net income) in the Income Summary account to Retained Earings. Required: 1. 2 Prepare journal entries to record each of these transactions Prepare a statement of retained earnings for the year ended December 31, 2020 Prepare the stockholders equity section of the company's balance sheet as of December 31, 2020 3