Common stock$20 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 800,000 Paid in capital in excess of par value, common stock 80,000 Retained earnings 370,000 Total stockholders' equity $ 1,250,000 During the current year, the following transactions affected its stockholders equity accounts January 2 Purchased 5,000 shares of its own stock at $25 cash per share January 5 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record February 28 Paid the dividend declared on January 5 July 6 Sold 2,500 of its treasury shares at $29 cash per share August 22 Sold 2,500 of its treasury shares at $21 cash per share September 5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record October 28 Paid the dividend declared on September 5 December 31 Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings Prepare journal entries to record each of these transactions Prepare a statement of retained earnings for the current year ended December 31 Prepare the stockholders equity section of the balance sheet as of December 31 of the current year

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Posted on Sep 14, 2024

Common stock$20 par value, 100,000 shares authorized, 40,000 shares issued and outstanding $ 800,000 Paid-in capital in excess of par value, common stock 80,000 Retained

Common stock$20 par value, 100,000 shares authorized, 40,000 shares issued and outstanding	$ 800,000
Paid-in capital in excess of par value, common stock	80,000
Retained earnings	370,000
Total stockholders' equity	$ 1,250,000

During the current year, the following transactions affected its stockholders equity accounts.

January 2	Purchased 5,000 shares of its own stock at $25 cash per share.
January 5	Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record.
February 28	Paid the dividend declared on January 5.
July 6	Sold 2,500 of its treasury shares at $29 cash per share.
August 22	Sold 2,500 of its treasury shares at $21 cash per share.
September 5	Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28	Paid the dividend declared on September 5.
December 31	Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Prepare journal entries to record each of these transactions. Prepare a statement of retained earnings for the current year ended December 31. Prepare the stockholders equity section of the balance sheet as of December 31 of the current year.