GL 1301 - Based on Problem 13-2A LO C3, P2, P3 Twinings Company reports the following components of stockholders' equity on December 31, 2016: Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 500,000 75,000 410,000 $985,000 In year 2017, the following transactions affected its stockholders' equity accounts. 1 Purchased 5,000 shares of its own stock at $23 cash per share. Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. July 6 Sold 1,900 of its treasury shares at $27 cash per share. : Aug. 22 Sold 3,100 of its treasury shares at $20 cash per share. Sept. 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 $365,000 credit balance (from net income) in the Income Summary account to Retained Earnings. journal entry is required, select "No journal entry required" in the first input box. View transaction list View journal entry worksheet Credit No 1 Date Jan 01 Account Title Treasury stock, Common Cash Debit 115,000 115,000 2 Jan 05 90,000 Retained earnings Common dividend payable 90,000 3 Feb 28 90,000 Common dividend payable Cash 90,000 4. Jul 06 51,300 Cash Treasury stock, Common Paid-in capital, Treasury stock 43,700 7,600 Aug 22 Cash Paid-in capital, Treasury stock Retained earnings Treasury stock, Common 62,000 21,700 4,000 87,700 6 Sep 05 100,000 Retained earnings Common dividend payable 100,000 Oct 28 100,000 Common dividend payable Cash 100,000 8 Dec 31 365,000 Income summary Retained earnings 365,000 Requirement General Journal General Ledger Trial Balance Statement of Stockholders RE Equity Impact on Equity Prepare the Statement of Retained Earnings for Twinings Corporation for the year ended December 31, 2017. TWININGS CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Less: Cash dividends declared Requirement General Journal General Ledger Trial Balance Statement of Stockholders RE Equity Impact on Equity Prepare the stockholders' equity section of Twinings Corporation's balance sheet as of December 31, 2017. Dates: Jan 01 to: Dec 31 - TWININGS CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2017 Total contributed capital Total stockholders' equity Statement of RE Impact on Equity > For each transaction, indicate the impact on total stockholders' equity. Enter decreases to equity as negative values. Verify that total Stockholders' equity as of December 31, 2017, as calculated, agrees with the amount reported on the balance sheet. to: Dec 31 Dates: Jan 01 $ Impact on equity Total Stockholders' Equity - December 31, 2016 Jan. 1) Purchased 5,000 shares of its own stock at $23 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 1,900 of its treasury shares at $27 cash per share. Aug. 22) Sold 3,100 of its treasury shares at $20 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 Dec. 31) Closed the $365,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Stockholders Equity Impact on Equity >
