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

Porter 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.

Jan.		2		Purchased 4,000 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 1,500 of its treasury shares at $27 cash per share.
Aug.		22		Sold 2,500 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 $591,500 credit balance (from net income) in the Income Summary account to Retained Earnings.

• Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.Answer was 72000 and it is correct
• Paid the dividend declared on January 5.
• Sold 1,500 of its treasury shares at $27 cash per share.
• Sold 2,500 of its treasury shares at $20 cash per share.
• Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
• Paid the dividend declared on September 5.
• Closed the $591,500 credit balance (from net income) in the Income Summary account to Retained Earnings.

Requirement Impact on General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Equity During the year, the following transactions affected its stockholders' equity accounts. Prepare the necessary journal ei journal entry is required, select "No journal entry required" in the first input box. View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Impact on Equity Dates: Jan 01 to: Dec 31 General Ledger Account Cash Accounts receivable No. Date Debit Credit No. Debit Credit Balance 475,000 Date Jan 01 Balance 193,000 Jan 01 Equipment No. Debit Credit No. Date Jan 01 Balance 785,000 Accumulated depreciation - Equipment Date Debit Credit Jan 01 Balance 71,500 Common stock Common dividend payable / Debit Credit No. Balance No. Debit Credit Date Jan 01 Jan 05 Date Jan 01 Balance 400,000 2 72,000 72,000 Paid-in capital, Common Retained earnings No. / Debit Credit No. Debit Credit Date Jan 01 Balance 60,000 Date Jan 01 Jan 05 Balance 330,000 258,000 2 72,000 Income summary Debit Credit No. Date Jan 01 Balance (591,500) Requirement General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Impact on Equity Dates: Jan 01 to: Dec 31 PORTER CORPORATION Trial Balance December 31, 2019 Account Title Credit Debit 475,000 193,000 785,000 Cash Accounts receivable Equipment Accumulated depreciation - Equipment Common dividend payable Common stock Paid-in capital, Common Retained earnings Income summary Total 71,500 72,000 400,000 60,000 258,000 591,500 1,453,000 $ 1,453,000 $ Answer is not complete. Requirement General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Impact on Equity Prepare the Statement of Retained Earnings for Porter Corporation for the year ended December 31. PORTER CORPORATION Statement of Retained Earnings For Year Ended December 31 $ 270,000 X 388,000 X 658,000 (152,000) (1,500) $ 504,500 During the year, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4,000 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 1,500 of its treasury shares at $27 cash per share. Aug. 22 Sold 2,500 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 $591,500 credit balance (from net income) in the Income Summary account to Retained Earnings. Answer is not complete. Requirement General Journal General Ledger Trial Balance Statement of RE Stockholders Equity Impact on Equity Prepare the stockholders' equity section of Porter Corporation's balance sheet as of December 31. Dates: Jan 01 - to: Dec 31 PORTER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 $ 400,000 60,000 Total contributed capital 460,000 -504,500 Total stockholders' equity $ 44,500 Requirement General Journal General Ledger Trial Balance Statement of Stockholders Equity 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, as calculated, agrees with the amount reported on the balance sheet. Dates: Jan 01 to: Dec 31 Impact on equity Total Stockholders' Equity - January 1 Jan. 2) Purchased 4,000 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 1,500 of its treasury shares at $27 cash per share. Aug. 22) Sold 2,500 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 5. Dec. 31) Closed the $591,500 credit balance (from net income) in the Income Summary account to Retained Earnings.