Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders equity on

Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders equity on December 31, 2016: Common stock$25 par value, 70,000 shares authorized, 41,000 shares issued and outstanding $ 1,025,000 Paid-in capital in excess of par value, common stock 82,000 Retained earnings 378,000 Total stockholders equity $ 1,485,000 In year 2017, the following transactions affected its stockholders equity accounts. Jan. 2 Purchased 4,100 shares of its own stock at $25 cash per share. Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 1,640 of its treasury shares at $30 cash per share. Aug. 27 Sold 2,050 of its treasury shares at $20 cash per share. Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $63,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions for 2017. 2. Prepare a statement of retained earnings for the year ended December 31, 2017. 3. Prepare the stockholders equity section of the companys balance sheet as of December 31, 2017.

  • Record the purchase 4,100 shares of its own common stock for $25 cash per share.

Note: Enter debits before credits.

Date General Journal Debit Credit
Jan 02

  • Record the declaration of a cash dividend of $1.50 per share.

Note: Enter debits before credits.

Date General Journal Debit Credit
Jan 07

  • Record the payment of the cash dividend declared on January 7.

Note: Enter debits before credits.

Date General Journal Debit Credit
Feb 28

Note: Enter debits before credits.

Date General Journal Debit Credit
Jul 09

  • Record the reissue of 2,050 shares of the treasury stock for $20 cash per share.

Note: Enter debits before credits.

Date General Journal Debit Credit
Aug 27

  • Record the declaration of a cash dividend of $2 per share.

Note: Enter debits before credits.

Date General Journal Debit Credit
Sep 09

  • rd the payment of the cash dividend declared on September 9.

Note: Enter debits before credits.

Date General Journal Debit Credit
Oct 22

  • Record the transfer of the credit balance of $63,000 in the income summary account to the retained earnings account.

Note: Enter debits before credits.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Database Security And Auditing Protecting Data Integrity And Accessibility

Authors: Hassan A. Afyouni

1st Edition

0619215593, 9780619215590

More Books

Students also viewed these Accounting questions

Question

What is nonverbal communication?

Answered: 1 week ago