GL1101 (Algo) - Based on Problem 11-2A LO C3, P2, P3

Edmunds Company reports the following components of stockholders equity on January 1.

Common stock$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding	$ 400,000
Paid-in capital in excess of par value, common stock	60,000
Retained earnings	330,000
Total stockholders' equity	$ 790,000

During the year, the following transactions affected its stockholders equity accounts.

January 2	Purchased 4,000 shares of its own stock at $23 cash per share.
January 5	Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
February 28	Paid the dividend declared on January 5.
July 6	Sold 2,000 of its treasury shares at $27 cash per share.
August 22	Sold 2,000 of its treasury shares at $19 cash per share.
September 5	Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28	Paid the dividend declared on September 5.
December 31	Closed the $380,500 credit balance (from net income) in the Income Summary account to Retained Earnings.

• Statement of RE
• Stockholders Equity
• Impact on Equity

Prepare the Statement of Retained Earnings for Edmunds Corporation for the year ended December 31.

EDMUNDS CORPORATION
Statement of Retained Earnings
For Year Ended December 31
Beginning retained earnings	$330,000
Add: Net income	380,500
	710,500
Less: Cash dividends declared	400,000
Ending retained earnings	$310,500

• Stockholders Equity
• Impact on Equity

Prepare the stockholders' equity section of Edmunds Corporation's balance sheet as of December 31.

UnadjustedAdjustedPost-closing

Dates:

January 01

to:

January 01

EDMUNDS CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31
Total contributed capital	0
Total stockholders' equity	$0

• 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, as calculated, agrees with the amount reported on the balance sheet.

UnadjustedAdjustedPost-closing

Dates:

January 01

to:

January 01

	Impact on equity	$
Total Stockholders' Equity - January 1
January 2) Purchased 4,000 shares of its own stock at $23 cash per share.
January 5) Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
February 28) Paid the dividend declared on January 5.
July 6) Sold 2,000 of its treasury shares at $27 cash per share.
August 22) Sold 2,000 of its treasury shares at $19 cash per share.
September 5) Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
October 28) Paid the dividend declared on September 5.
December 31) Closed the $380,500 credit balance (from net income) in the Income Summary account to Retained Earnings.