Check Quality First Company reports the following components of stockholders' equity on January 1 Common stock-$10 par value, 188,880 shares authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $400,000 60,000 330,000 $ 790,000 es During the year, the following transactions affected its stockholders' equity accounts Jan. 2 Purchased 4,000 shares of its own stock at $23 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,580 of its treasury shares at $27 cash per share. Aug. 22 Sold 2,500 of its treasury shares at $20 cash per share. Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Oct. 28 Paid the dividend declared on September 5. Dec. 31 Closed the $370,000 credit balance (from net income) in the Income Summary account to Retained Earnings. General Requirement General Statement of Stockholders Impact on Journal Ledger Trial Balance RE Equity Equity General Journal tab - Prepare the necessary journal entries. Statement of Retained Earnings tab - Prepare the Statement of Retained Earnings for the Quality First Corporation for the year ended December 31. Stockholders' Equity tab - Prepare the Stockholders' equity section of Quality First Corporation's December 31 balance sheet Impact on Equity tab - For each transaction, indicate the total change in Stockholders' Equity, if any, Verify that total equity, as calculated, agrees with the amount reported on the Stockholders' Equity tab. Requirement General Journal General Ledger Trial Balance Statement of Stockholders RE Equity Impact on Equity Dates: Jan 01 to: Dec 31 General Ledger Account Cash No. Debit Date Jan 01 Credit Balance 370,000 Accounts receivable Debit Credit No. Date Jan 01 Balance 172.000 No. Equipment Debit Date Jan 01 Credit Balance 680,000 No. Accumulated depreciation - Equipment Date Debit Credit Jan 01 Balance 62,000 Common stock No. Debit Date Jan 01 Credit Pald-in capital, Common Debit Credit Balance 400,000 No. Date Jan 01 Balance 60,000 Retained earnings Debit Credit No. Date Jan 01 Balance 330,000 Income summary Debit Credit No. Date Jan 01 Balance (370.000) General Journal Trial Balance > per share. Shares at $20 cash per share. red a $2 per share cash dividend payable on October 28 to the September 25 stockholders 28 Paid the dividend declared on September 5. 31 Closed the $370,000 credit balance (from net income) in the Income Summary account to Retained Earnings. record. Oct. Dec. Requirement General Journal General Ledger Trial Balance Statement of Stockholders RE Equity Impact on Equity Dates: Jan 01 to: Dec 31 QUALITY FIRST CORPORATION Trial Balance December 31, 2019 Account Title Credit DAAD $ Cash Accounts receivable Equipment Accumulated depreciation Equipment Common stock Paid in capital, Common Retained earings income summary Debit 370,000 172.000 680.000 Total 62.000 400,000 60,000 330,000 370.000 1.222.000 1.222.000 $ General Ledger Statement of RE> Oct. Dec. Uctober 28 to the September 25 28 Paid the dividend declared on September 5. 31 Closed the $370,000 credit balance (from net income) in the Income Summary account to Reta 35 Requirement General General Statement of Stockholders Journal Trial Balance Impact on Ledger RE Equity Equity Prepare the Statement of Retained Earnings for Quality First Corporation for the year ended December 31. QUALITY FIRST CORPORATION Statement of Retained Earnings For Year Ended December 31 0 $ 0 Saved + nces General Requirement General Statement of Stockholders Journal Trial Balance Impact on Ledger RE Equity Equity For each transaction, indicate the impact on total stockholders' equity. Enter decreases to equity as negativ values. Verify that total Stockholders' equity as of December 31, as calculated, agrees with the amount reported on the balance sheet. Dates: Jan 01 to: Dec 31 Impact on equity Total Stockholders' Equity - January 1 Jan. 2) Purchased 4,000 shares of its own stock at $23 cash per share. Jan. 5) Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. Feb. 28) Paid the dividend declared on January 5. Jul. 6) Sold 1,500 of its treasury shares at $27 cash per share. Aug. 22) Sold 2,500 of its treasury shares at $20 cash per share. Sep. 5) Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Oct. 28) Paid the dividend declared on September 5 Dec. 31) Closed the $370,000 credit balance (from not income) in the Income Summary account to Retained Earnings
