Question
Krupp Company reported the following amounts in the stockholders' equity section of its December 31, 2017, balance sheet. Common stock, $5 par (2,000,000 shares authorized,
Krupp Company reported the following amounts in the stockholders' equity section of its December 31, 2017, balance sheet. | ||||
Common stock, $5 par (2,000,000 shares authorized, 600,000 shares issued &outstanding) | 3,000,000 |
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Additional paid-in capital | 850,000 |
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Retained earnings | 4,500,000 |
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Total | 8,350,000 |
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During 2018, Krupp took part in the following transactions concerning stockholders' equity. |
1 | Jan 5 - 45,000 shares of authorized and unissued common stock were sold for $8 per share |
2 | Jan 16 - Declared a cash dividend of 20 cents per share, payable February 15 to stockholders of record on February 5 |
3 | Feb 10 - 60,000 share of authorized and unissued common stock were sold for $12 per share |
4 | Feb 15 - Cash dividend declared on Jan 16 is paid |
5 | Mar 1 - Purchased 10,000 of its own outstanding common stock for $13 per share. Krupp Co. uses the cost method |
6 | Mar 15 - A 10% stock dividend was declared and issued. Fair value per share is currently $15 |
(a) Prepare journal entries to record the transactions described above. |
b) Enter the events from part a) in the following worksheet showing how each event affects the column. |
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