Stockholders' Equity: Transactions and Statement The stockholders equity section of Night Corporation's balance sheet at January 1 follows: common stock. $6 par value, 300,000 shares authorized, 60,000 shares 360,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 600,000 From treasury stock 37.500 637.500 Retained earnings 435.000 11,482.500 Less: Treasury stock (6,000 shares) at cost 174.500 Total Stockholders Equity H260.000 Jan. The following transactions affecting stockholdersTM equlty occurred during the year: 8 Issued 15,000 shares of previously unissued common stock for $26 dash per share Mar. 12 Sold all of the treasury shares for $35 cash per share, June 30 Declared a five percent stock dividend on all outstanding shares of common stock the market value of the stock was 531 per share. July 10 Issued the stock dividend dedared on June 30. Oct. 7 Acquired 2.500 shares of common stock as treasury stock at $35 cash per share. Dec. 18. Declared a cash dividend of $1.00 per outstanding common share payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions, b. Prepare a statement of stockholdersTM equity. Net income for the year is $426,250. Journal Entries Statement of Stockholders Equity Debit Credit 0 390000 900001 300000 O 210000 0. OM 172500 OM B7500 OV ON ON General Journal Date Description an.8 Cash Common Stock Paid-in-Capital in Excess of Par Value issued shares of common stock. Mar.12 Cash Treasury Stock Paid-in-Capital from Treasury Stock Sold shares of treasury stock, Jun 30 Stock Dividends w Stock Dividend Distributable Paid-in-Capital in Excess of Par Value Declared stock dividend, Jul.10 Stock Dividend Distributable Common Stock Issued shares of common stock declared as dividend, Oct.7 Treasury Stock Cash IN Purchased shares of common stock for treasur Dec. 18 Cash Dividends Dividends Payable e Declared cash dividend. Dec.31 Income Summary Retained earnings To close the income summary account. Dec.31 Retained earnings Stock dividends Cash Dividends To close the dividend accounts 22500 OM A2500 OM 82500 OM 82500 Oy 72500 2 O 72500 X 0 426250 0 IM 426250 188750 X 0 0 72500 O 116250 X Stockholders' Equity: Transactions and Statement The stockholders equity section of Night Corporation's balance sheet at January 1 follows: common stock. $6 par value, 300,000 shares authorized, 60,000 shares 360,000 issued, 6,000 shares in treasury Additional paid-in capital In excess of par value 600,000 From treasury stock 37.500 637.500 Retained earnings 435.000 11,482.500 Less: Treasury stock (6,000 shares) at cost 174.500 Total Stockholders Equity H260.000 Jan. The following transactions affecting stockholdersTM equlty occurred during the year: 8 Issued 15,000 shares of previously unissued common stock for $26 dash per share Mar. 12 Sold all of the treasury shares for $35 cash per share, June 30 Declared a five percent stock dividend on all outstanding shares of common stock the market value of the stock was 531 per share. July 10 Issued the stock dividend dedared on June 30. Oct. 7 Acquired 2.500 shares of common stock as treasury stock at $35 cash per share. Dec. 18. Declared a cash dividend of $1.00 per outstanding common share payable on January 9 to stockholders of record on December 31. Required a. Prepare journal entries to record the foregoing transactions, b. Prepare a statement of stockholdersTM equity. Net income for the year is $426,250. Journal Entries Statement of Stockholders Equity Debit Credit 0 390000 900001 300000 O 210000 0. OM 172500 OM B7500 OV ON ON General Journal Date Description an.8 Cash Common Stock Paid-in-Capital in Excess of Par Value issued shares of common stock. Mar.12 Cash Treasury Stock Paid-in-Capital from Treasury Stock Sold shares of treasury stock, Jun 30 Stock Dividends w Stock Dividend Distributable Paid-in-Capital in Excess of Par Value Declared stock dividend, Jul.10 Stock Dividend Distributable Common Stock Issued shares of common stock declared as dividend, Oct.7 Treasury Stock Cash IN Purchased shares of common stock for treasur Dec. 18 Cash Dividends Dividends Payable e Declared cash dividend. Dec.31 Income Summary Retained earnings To close the income summary account. Dec.31 Retained earnings Stock dividends Cash Dividends To close the dividend accounts 22500 OM A2500 OM 82500 OM 82500 Oy 72500 2 O 72500 X 0 426250 0 IM 426250 188750 X 0 0 72500 O 116250 X