GL1301 - Based on Problem 13-2A 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 Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 400,000 60,000 330,000 $ 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. Dee. 31 closed the $591,500 credit balance (from net income) in the Income Summary account to Retained Earnings. Answer is complete but not entirely correct. Answer is complete but not entirely correct. Requirement General Journal General Ledger Total Balance Statement of stockholders Statement of Stockholders Equity RE Impact on Equity impact on 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 790,000 (92,000) Stockholders' equity decreased Stockholders' equity decreased (72,000) 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 281 Paid the dividend declared on No change in total equity Stockholders' equity increased Stockholders' equity increased 0 6,000 (1,500) Stockholders' equity decreased (80,000) Dates! Jan 01 to: Dec 31 $ 790,000 (92,000) (72,000) 0 Impact on equity Total Stockholders' Equity - January 1 Jan. 2) Purchased 4,000 shares of its own Stockholders' equity stock at $23 cash per share. decreased Jan. 5) Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 Stockholders' equity decreased stockholders of record. Feb. 28) Paid the dividend declared on January 5. No change in total equity Jul. 6) Sold 1,500 of its treasury shares at $27 Stockholders' equity cash per share. increased Aug. 22) Sold 2,500 of its treasury shares at Stockholders' equity $20 cash per share. increased Sep. 5) Directors declared a $2 per share cash dividend payable on October 28 to the Stockholders' equity September 25 stockholders of record. decreased Oct. 28) Paid the dividend declared on September 5. No change in total equity Dec. 31) Closed the $591,500 credit balance (from net income) in the Income Summary Stockholders' equity account to Retained Earnings. increased Total Stockholders' Equity - as calculated on December 31 Total Stockholder's Equity as reported on Stockholder's Equity tab Unreconciled difference: 6,000 (1,500) (80,000) 0 591,500 $ 1,142,000 $ 1,228,000 $ (86,000)
