Common stock-$10 par value, 110,000 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 During the year, the following transactions affected its stockholders' equity accounts. Jan. Jan. Feb. July Aug. Sept. 2 Purchased 4,000 shares of its own stock at $23 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. 28 Paid the dividend declared on January 5. 6 Sold 1,500 of its treasury shares at $27 cash per share. 22 Sold 2,500 of its treasury shares at $20 cash per share. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. 28 Paid the dividend declared on September 5. 31 Closed the $391,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Oct. Dec. Date Account Title Debit Credit Jan 02 92,000 Treasury stock, Common Cash 92,000 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. Note: Enter debits before credits. Date Account Title Debit Credit Jan 05 Sold 1,500 of its treasury shares at $27 cash per share. Note: Enter debits before credits. Date Account Title Debit Credit Jul 06 Sold 2,500 of its treasury shares at $20 cash per share. Note: Enter debits before credits. Date Account Title Debit Credit Aug 22 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Note: Enter debits before credits. Date Account Title Debit Credit Sep 05 Paid the dividend declared on September 5. Note: Enter debits before credits. Date Account Title Debit Credit Oct 28 Closed the $391,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. Date Account Title Debit Credit Dec 31 $ 790,000 92,000 72,000 X 0 40,500 Impact on equity Total Stockholders' Equity - January 1 Jan. 2) Purchased 4,000 shares of its own Stockholders' equity stock at $23 cash per share. decreased Jan. 5) Directors declared a $2 per share cash Stockholders' equity dividend payable on Feb. 28 to the Feb. 5 decreased stockholders of record. Feb. 28) Paid the dividend declared on No change in total equity January 5. Jul. 6) Sold 1,500 of its treasury shares at $27 Stockholders' equity cash per share. increased Aug. 22) Sold 2,500 of its treasury shares at Stockholders' equity $20 cash per share. increased Sep. 5) Directors declared a $2 per share cash Stockholders' equity dividend payable on October 28 to the decreased September 25 stockholders of record. Oct. 28) Paid the dividend declared on No change in total equity September 5. Dec. 31) Closed the $391,000 credit balance Stockholders' equity (from net income) in the Income Summary increased account to Retained Earnings. Total Stockholders' Equity - as calculated on December 31 Total Stockholder's Equity as reported on Stockholder's Equity tab Unreconciled difference: 50,000 80,000 0 391,000 $ 1,515,500 $ 1,027,500 $ 488,000
