Kendall Company reports the following components of stockholders equity on December 31, 2016 Common stock$10 par value, 140,000 shares authorized, 60,000 shares issued and outstanding $ 600,000 Paid in capital in excess of par value, common stock 90,000 Retained earnings 500,000 Total stockholders' equity $ 1,190,000 In year 2017, the following transactions affected its stockholders equity accounts Jan 1 Purchased 6,000 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 2,300 of its treasury shares at $27 cash per share Aug 22 Sold 3,700 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 $223,000 credit balance (from net income) in the Income Summary account to Retained Earnings 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 UnadjustedAdjustedPost closing Dates Jan 01 to Dec 31 Impact on equity $ Total Stockholders' Equity December 31, 2016 $1,190,000 Jan 1) Purchased 6,000 shares of its own stock at $23 cash per share Stockholders' equity increased 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 2,300 of its treasury shares at $27 cash per share Aug 22) Sold 3,700 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 $223,000 credit balance (from net income) in the Income Summary account to Retained Earnings

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 01, 2024

Kendall Company reports the following components of stockholders equity on December 31, 2016: Common stock$10 par value, 140,000 shares authorized, 60,000 shares issued and outstanding

Kendall Company reports the following components of stockholders equity on December 31, 2016:


Common stock$10 par value, 140,000 shares authorized, 60,000 shares issued and outstanding	$	600,000
Paid-in capital in excess of par value, common stock		90,000
Retained earnings		500,000
Total stockholders' equity	$	1,190,000

In year 2017, the following transactions affected its stockholders equity accounts.

Jan.	1	Purchased 6,000 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 2,300 of its treasury shares at $27 cash per share.
Aug.	22	Sold 3,700 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 $223,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

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.

UnadjustedAdjustedPost-closing

Dates:

Jan 01

to:

Dec 31

	Impact on equity	$
Total Stockholders' Equity - December 31, 2016		$1,190,000
Jan. 1) Purchased 6,000 shares of its own stock at $23 cash per share.	Stockholders' equity increased
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 2,300 of its treasury shares at $27 cash per share.
Aug. 22) Sold 3,700 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 $223,000 credit balance (from net income) in the Income Summary account to Retained Earnings.