Question
Exercise 21-18 (Algo) Spreadsheet entries from statement of retained earnings [LO21-3, 21-4, 21-5, 21-6, 21-7, 21-8] The statement of retained earnings of Gary Larson Publishers
Exercise 21-18 (Algo) Spreadsheet entries from statement of retained earnings [LO21-3, 21-4, 21-5, 21-6, 21-7, 21-8]
The statement of retained earnings of Gary Larson Publishers is presented below.
GARY LARSON PUBLISHERS Statement of Retained Earnings For the Year Ended December 31, 2021 ($ in millions) | ||||
Retained earnings, January 1 | $ | 210 | ||
Add: | Net income | 78 | ||
Deduct: | Cash dividend | (22 | ) | |
Stock dividend (1 million shares of $1 par common stock) | (13 | ) | ||
Property dividend (Garfield Company preferred stock held as a short-term investment) | (10 | ) | ||
Sale of treasury stock (cost $50 million) | (8 | ) | ||
Retained earnings, December 31 | $ | 235 | ||
Required: For the transactions that affected Larsons retained earnings, reconstruct the journal entries that can be used to determine cash flows to be reported in a statement of cash flows. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
-
1
Record the closing entry of net income to retained earnings.
-
2
Record the payment of the cash dividend.
-
3
Record the issuance of the stock dividend.
-
4
Record the issuance of the property dividend.
-
5
Record the sale of treasury shares.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started