Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 13-24 (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alex Corporation reports the following components of stockholders' equity

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 13-24 (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$25 par value, 70,000 shares authorized, 41,000 shares $ 1,025,000 Paid-in capital in excess of par valve, common stock 82,000 Retained earninga 378,000 Total stockholders' equity $ 1,485,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 4,100 shares of its own stock at $25 cash per share. January Directors declared a $1.50 per share cash dividend payable on February 28 to the February 3 stockholders of record. February 28 Paid the dividend declared on January 7. July Sold 1.640 of its treasury shares at $30 cash per share. August 22 Sold 2,050 of its treasury shares at $21 cash per share September 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. October 22 Paid the dividend declared on September 9. December 31 closed the $65,000 credit balance (fron net incone) in the focone 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 current year ended December 31 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required: 1. Prepare journal entries to record each of these transactions, 2. Prepare a statement of retained earnings for the current year ended December 31, 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Journal entry worksheet Record the payment of the cash dividend declared on January 7. Note: Enter debits before credits Date General Journal Debit Credit February 28 Record entry Clear entry View general Journal Saved Saved View transaction list Journal entry worksheet Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits General Journal Debit Credit Date September 09 Record entry Clear entry View general Journal View transaction list Journal entry worksheet

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

Step: 3

blur-text-image

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

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Ph.D. Sangster, Alan

12th Edition

0273767925, 9780273767923

More Books

Students also viewed these Accounting questions