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Problem 82: On January 1, 2019, selected finandal data of CK Includes the following account balances: Shareholders' Equity: January 1, 2019 Contributed Capital: Common Stock
Problem 82: On January 1, 2019, selected finandal data of CK Includes the following account balances: Shareholders' Equity: January 1, 2019 Contributed Capital: Common Stock ($1 par) $ 10,000 APIC (addl pald in capital) $ 80.000 Total Contribute Capital $ 90,000 Retained Earnings $ 45,100 Total Shareholders' Equity $135.100 January Transactions: January 2: Issue an additional 2,000 shares of $1 par value common stock for $40,000. January 12: Purchase 1,000 share of treasury stock for $18 per share January 29: Declare a cash dividend of $0.30 per share to all shares outstanding on January 29. The dividend is payable on February 15 (Hint: Ok had 10,000 shares outstanding on January 1, 2019 and dividends are not paid on treasury stock). January 30: Resell 600 shares of treasury stock for $20 per share. Required: a) Prepare the journal entries for the above transactions. b) Which financial statements are dividends declared and dividends payable reported in at January 317 c) Prepare the January 31" stockholders' equity section of the balance sheet, assuming the company had net income of $21,400 for January. Fa) Journal Entries: Accounts Debit Credit Jan 2 Jan 12 Jan 29 Jan 30 I b) Dividends declared: Dividends payable: c) Shareholders' Equity: Contributed Capital: January 31, 2019 Common Stock APIC Total Contributed Capital Retained Earnings Treasury Stock Total Shareholders' Equity
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