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The balance sheet of Relaxation, Inc., at December 31, 2017, reported 400,000 shares of $1 par common stock authorized with 90,000 shares issued and outstanding.
The balance sheet of Relaxation, Inc., at December 31, 2017, reported 400,000 shares of $1 par common stock authorized with 90,000 shares issued and outstanding. Paid-in capital in excess of parcommon had a balance of $312,000. Retained earnings had a balance of $108,000. During 2018, the company completed the following selected transactions: (Click the icon to view the transactions.) Read the requirements Requirement 1. Record the transactions in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Feb 15: Purchased 2,000 shares of treasury stock at $8 per share. Journal Entry Date Accounts Debit Credit Feb 15 Mar 8: Sold 1,000 shares of treasury stock for $13 per share. Journal Entry Date Accounts Debit Credit Mar 8 Sep 28: Declared and distributed a 10% stock dividend on the 89,000 shares of outstanding common stock. The market value of Relaxation's common stock was $11 per share. Journal Entry Date Accounts Debit Credit Sep 28 Feb Mar Sep 15 Purchased 2,000 shares of treasury stock at $8 per share. 8 Sold 1,000 shares of treasury stock for $13 per share. 28 Declared and distributed a 10% stock dividend on the 89,000 shares of outstanding common stock. The market value of Relaxation's common stock was $11 per share. Sep Print Done Requirement 2. Prepare the stockholders' equity section of the balance sheet at December 31, 2018, assuming the company earned $90,000 of net income during the year. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Stockholders' Equity Paid-in capital: Total stockholders' equity
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