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Please help prepare the stockholders' equity section to Teal Company's balance sheet. (part b ) Teal Company has the following stockholders' equity accounts at December
Please help prepare the stockholders' equity section to Teal Company's balance sheet. (part b)
Teal Company has the following stockholders' equity accounts at December 31, 2020. (a) Prepare entries in journal form to record the following transactions, which took place during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) 300 shares of outstanding stock were purchased at $98 per share. (These are to be accounted for using the cost method.) (2) A \$21 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $102 per share. (5) 460 shares of outstanding stock were purchased at $105 per share. (6) 350 of the shares purchased in (5) above were resold at $97 per share. No. Account Titles and Explanation Debit Credit 1. Treasury Stock $29,400 Cash 2. Retained Earnings $93,030 Dividends Payable 3. Dividends Payable $93,030 4. Cash $30,600 Treasury Stock Paid-in Capital from Treasury Stock $93,030 5. Treasury Stock $48,300 Cash 6. Cash $33,950 Retained Earnings $1,600 Paid-in Capital from Treasury Stock Treasury Stock $36,750 Prepare the stockholders' equity section of Teal Company's balance sheet after giving effect to these transactions, assuming that the net income for 2021 was $103,200. State law requires restriction of retained earnings for the amount of treasury stock. (Enter account name only and do not provide descriptive information.)Step by Step Solution
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