Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Create the following sheets in a new Excel workbook . Use proper number formatting, formulas, and links. 2020 Stockholders' Equity sheet - Prepare the Stockholders'
- Create the following sheets in a new Excel workbook. Use proper number formatting, formulas, and links.
-
- 2020 Stockholders' Equity sheet- Prepare the Stockholders' equity section of ABC Corporation's December 31, 2020 balance sheet.
- General Journal sheet - Prepare the necessary journal entries.
- Statement of Retained Earnings sheet - Prepare the Statement of Retained Earnings for ABC Corporation for the year ended December 31, 2021.
- 2021 Stockholders' Equity sheet- Prepare the Stockholders' equity section of ABC Corporation's December 31, 2021 balance sheet.
- Use the following information to complete the project:
- 2020 Stockholders' Equity sheet- Prepare the Stockholders' equity section of ABC Corporation's December 31, 2020 balance sheet.
- General Journal sheet - Prepare the necessary journal entries.
- Statement of Retained Earnings sheet - Prepare the Statement of Retained Earnings for ABC Corporation for the year ended December 31, 2021.
- 2021 Stockholders' Equity sheet- Prepare the Stockholders' equity section of ABC Corporation's December 31, 2021 balance sheet.
ABC corporation reports the following components of stockholders equity on December 31, 2020:
- Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding: $400,000
- Paid-in capital in excess of par value, common stock: 60,000
- Retained earnings: 270,000
- Total stockholders' equity: $730,000
In the year 2021, the following transactions affected its stockholders equity accounts.
- Jan. 1 Purchased 4,000 shares of its own stock at $20 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 $24 cash per share.
- Aug. 22 Sold 2,500 of its treasury shares at $17 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started