Common stock$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 825,000 Paid in capital in excess of par value, common stock 70,000 Retained earnings 400,000 Total stockholders' equity $ 1,295,000 During 2019, the following transactions affected its stockholders equity accounts Jan 2 Purchased 6,000 shares of its own stock at $15 cash per share Jan 5 Directors declared a $6 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 2,250 of its treasury shares at $19 cash per share Aug 22 Sold 3,750 of its treasury shares at $12 cash per share Sept 5 Directors declared a $6 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings Required 1 Prepare journal entries to record each of these transactions 2 Prepare a statement of retained earnings for the year ended December 31, 2019 3 Prepare the stockholders equity section of the companys balance sheet as of December 31, 2019

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Posted on Sep 06, 2024

Common stock$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding $ 825,000 Paid-in capital in excess of par value, common stock 70,000 Retained


Common stock$15 par value, 100,000 shares authorized, 55,000 shares issued and outstanding	$	825,000
Paid-in capital in excess of par value, common stock		70,000
Retained earnings		400,000
Total stockholders' equity	$	1,295,000

During 2019, the following transactions affected its stockholders equity accounts.

Jan.	2	Purchased 6,000 shares of its own stock at $15 cash per share.
Jan.	5	Directors declared a $6 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 2,250 of its treasury shares at $19 cash per share.
Aug.	22	Sold 3,750 of its treasury shares at $12 cash per share.
Sept.	5	Directors declared a $6 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2019. 3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2019.