Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ronier Corporatiog reports the following components of stockholders' equity at December 31 of the prior year. Connon stock-520 par value, 100,000 shares authorized, 45,000 shares

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Ronier Corporatiog reports the following components of stockholders' equity at December 31 of the prior year. Connon stock-520 par value, 100,000 shares authorized, 45,000 shares issued and outstanding Paid-in capital in excess of par value, conmon stock Retained earnings Total stockholders' equity $900,000 80,000 439,000 $1,410,000 During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5 , 000 shares of its own stock at $20 cash per share. January 5 Directors dectared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. Juty 6 Sold 2,500 of its treasury shares at $24 cash per share. August 22 Sold 2,500 of its treasury shares at $16 cash per share. septenber 5 oirectors declared a $6 per share cash dividend payable on october 28 to the September 25 stockholders of record. record. October 28 Paid the dividend declared on September 5 . Decenber 31 Closed the $368,000 credit balance (from net incone) in the Income Surnary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained carnings for the current year ended December 31 . 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current yeat, 1 Record the purchase of 5,000 shares of its own common stock for $20 cash per share. 2 Record the declaration of a cash dividend of $6 per share. 3 Record the payment of the cash dividend. 4 Record the reissue of 2,500 shares of the treasury stock for $24 cash per share. 5 Record the reissue of 2,500 shares of the treasury stock for $16 cash per share. 6 Record the declaration of a cash dividend of $6 per share. 7 Record the payment of the cash dividend. 8 Record the entry to close the $368,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Prepare a statement of retained earnings for the current year ended December 31 . Note: Amounts to be deducted should be indicated by a minus sign. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

4th edition

77862376, 978-0077862374

More Books

Students also viewed these Accounting questions

Question

Find the derivative. f(x) 8 3 4 mix X O 4 x32 4 x32 3 -4x - x2

Answered: 1 week ago