Share Holder equity

Utah Corporation reports the following components of stockholders' equity on December 31

Common stock$20 par value, 100,000 shares authorized,

40,000 shares issued and outstanding 800,000

Paid-in capital in excess of par value, common stock 60,000

Retained earnings 430,000

Total stockholders' equity 1,290,000

During thea year,the following transactions affected its stockholders' equity accounts.

Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share.

Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.

Feb. 28 Paid the dividend declared on January 5.

July 6 Sold 1,688 of its treasury shares at $19 cash per share.

Aug. 22 Sold 2,812 of its treasury shares at $12 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 September 5.

Dec. 31 Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:

1. Prepare journal entries to record each of these transactions.

2. Prepare statement of retained earnings for the year ended December 31, 2019.

3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.

No Date General Journal Debit Credit

1 2-Jan

2 5-Jan

3 28-Feb

4 6-Jul

5 22-Aug

6 5-Sep

7 28-Oct

8 31-Dec

Statement of Retained Earnings

31-Dec

Beginning retained earnings

Ending retained earnings

Stockholders' Equity Section of the Balance Sheet

31-Dec

Total contributed capital

Total stockholders' equity