Quality First Company reports the following components of stockholders equity on December 31, 2016:
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Common stock-$10 par value, 100,000 shares authorized, 400,000 60,000 330,000 790,000 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity In year 2017, the following transactions affected its stockholders' equity accounts 1 Purchased 4,000 shares of its own stock at $23 cash per share. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of Jan. Jan. record . Feb. 28 Paid the dividend declared on January 5 July 6 Sold 1,500 of its treasury shares at $27 cash per share. Aug. 22 Sold 2,500 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 September5 Dec. 31 Closed the $370,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Answer is complete but not entirely correct. General Journal General Ledger Statement of Stockholders Impact on Equity Requirement Trial Balance RE Equity General Journal tab Prepare the necessary journal entries Statement of Retained Earnings tab Prepare the Statement of Retained Earnings for the Quality First Corporation for the year ended December 31, 2017 Stockholders Equity tab - Prepare the Stockholders' equity section of Quality First Corporation's December 31, 2017 balance sheet Impact on Equity tab - For each transaction, indicate the total change in Stockholders' Equity, if any. Verify that total equity, as calculated, agrees with the amount reported on the Stockholders' Equity tab General Journal> Requirement Answer is complete but not entirely correct General Journal General Ledger Statement of Stockholders Impact on Equity Requirement Trial Balance RE Equity In year 2017, the following transactions affected its stockholders' equity accounts. Prepare the necessary journal entries. If no journal entry is required, select "No journal entry required" in the first input box Date Debit Account Title Credit 92,000 Jan 01 Treasury stock, Common Cash 92,000 72,000 Jan 05 Retained earnings 72,000 Common dividend payable 72,000 Feb 28 Common dividend payable 72,000 Cash 40,500 Jul 06 Cash 4 34,500 6,000 Treasury stock, Common Paid-in capital, Treasury stock 50,000 6,000 1,500 Aug 22 Cash Paid-in capital, Treasury stock Retained earnings 57,500 Treasury stock, Common Sep 05 Retained earnings 80,000 80,000 Common dividend payable 80,000 Oct 28 Common dividend payable 80,000 Cash 370,000 Dec 31 Income summary 370,000 Retained earnings Requirement General General Statement of Stockholders Impact on Trial Balance Equity ournal Equity Dates: Jan 01 t: Dec 31 General Ledger Account Accounts receivable Debit Credit Date Debit Credit Balance Balance Dec 31 1Jan 01 3Feb 28 Jul 06 370,000 278,000 206,000 246,500 296,500 216,500 Dec 31 172,000 92,000 72,000 40,500 50,000 5 7 Oct 28 80,000 Equipment Accumulated depreciation - Equipment Debit Credit Debit Credit Balance Balance Dec 31 680,000 Dec 31 62,000 Common dividend payable Common stock Debit Credit Debit Credit Balance Balance Jan 01 2 Jan 05 3Feb 28 400,000 72,000 72,000 72,000 80,000 7 Oct 28 80,000 Paid-in capital, Common Paid-in capital, Treasury stock Debit Debit Credit Credit Balance Balance 60,000 6,000 6,000 5 Retained earnings Treasury stock, Common Debit Credit Balance Debit Credit Balance 330,000 258,000 256,500 176,500 546,500 Jan 01 2 Jan 05 5 6 Sep 05 8 Dec 31 72,000 92,000 92,000 57,500 5 Aug 22 80,000 57,500 370,000 Debit Credit Balance Dec 31 (370,000) 8 Dec 31 370,000 Answer is complete but not entirely correct. General Journal General Ledger Statement of Stockholders Impact on Requirement Trial Balance RE Equity Equity Dates: Jan 01 to: Dec 31 QUALITY FIRST CORPORATION Trial Balance December 31, 2017 Account Title Debit Credit Cash Accounts receivable Equipment Accumulated depreciation Common stock Paid-in capital, Common Retained earnings 216,500 172,000 680,000 Equipment 62,000 400,000 60,000 546,500 1,068,500 Total 1,068,500$ Answer is complete but not entirely correct Statement of StockholdersImpact on Equity General Journal General Ledger Requirement Trial Balance RE Equity Prepare the Statement of Retained Earnings for Quality First Corporation for the year ended December 31, 2017 QUALITY FIRST CORPORATION Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, Dec. 31, 2016 $330,000 370,000 700,000 Add: Net income Less: Cash dividends declared Less: Treasury stock reissuances Retained earnings, Dec. 31, 2017 0 700,000 $ KTrial Balance Stockholders Equity>
