Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please verify all my figures and assist with the stockholder equity section! Thanks Cheyenne Company has the following stockholders' equity accounts at December 31, 2017
Please verify all my figures and assist with the stockholder equity section! Thanks
Cheyenne Company has the following stockholders' equity accounts at December 31, 2017 Common Stock ($100 par value, authorized 8,700 shares) Retained Earnings $502,800 277,400 Prepare entries in journal form to record the following transactions, which took place during 2018. (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) 260 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $20 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 $103 per share (5) 480 shares of outstanding stock were purchased at $106 per share (6) 370 of the shares purchased in (5) above were resold at $96 per share No. Account Titles and Explanation Debit Credit 1. Treasury Stock 25,220 Cash 25,220 2. Retained Earnings 95 Dividends Payable 95,360 3. Dividends Payable 95 Cash 95 4. Cash 26,780 Treasury Stock 25,220 Paid-in Capital from Treasury Stock 5. Treasury Stock 50,880 Cash 50,880 6. Cash 35,520 Paid-in Capital from Treasury Stock Retained Earnings 214 Treasury Stock 39,220 Prepare the stockholders' equity section of Cheyenne Company's balance sheet after giving effect to these transactions, assuming that the net income for 2018 was $100,700. State law requires restriction of retained earnings for the amount of treasury stock. (Enter account name only and do not provide descriptive information.) CHEYENNE COMPANY Stockholders' Equity December 31, 2018 Retained Earnings Common Stock Total Paid-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started