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I need help with the remaining questions as well as two of the totals for step 5. Exercise 11-24 (Algo) Cash dividends, treasury stock, and
I need help with the remaining questions as well as two of the totals for step 5.
Exercise 11-24 (Algo) Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity at December 31, 2019. Connon stock-$25 par value, 60,000 shares authorized, 37,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 925,000 74,000 364,000 $1,363,000 Jan. July During 2020, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,700 shares of its own stock at $25 cash per share. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. 9 Sold 1,480 of its treasury shares at $30 cash per share. Aug. 27 Sold 1,858 of its treasury shares at $20 cash per share. Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $59,000 credit balance (from net incone) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the year ended December 31, 2020. 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2020. Prepare journal entries to record each of these transactions. No Date General Journal Debit Credit 1 Jan 02 92,500 Treasury stock, common Cash O 92,500 2 Jan 07 49,950 Retained earnings Common dividend payable O 49,950 3 Feb 28 49,950 Common dividend payable Cash O 49,950 4 Jul 09 Cash > 44,400 Treasury stock, common Paid-in capital, treasury stock 37,000 7,400 > 5 Aug 27 37,000 Cash Paid-in capital, treasury stock Retained earnings Treasury stock, common 46,250 Journal entry worksheet Record the declaration of a cash dividend of $2 per share. Note: Enter debits before credits. General Journal Debit Credit Date Sep 09 Record entry Clear entry View general journal Journal entry worksheet Record the payment of the cash dividend declared on September 9. Note: Enter debits before credits. General Journal Debit Credit Date Oct 22 Record entry Clear entry View general journal Journal entry worksheet Record the entry to close the $59,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31Step by Step Solution
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