The$$ stockholders' equity section of Vinny $$Stores$,$ Inc.$\text{'}$s balance sheet at December $31,2021$follows: Stockholders' Equity

Common Stock: no par, $$2$ stated value, $130,000$ authorized, $65,000$ shares

$$130,000$

issued, and $55,000$ shares outstanding

Additional Paid$-$in Capital in Excess of Stated Value $-$ Common

$375,000$

Retained Earnings

$960,000$

Less: Cost of Treasury Stock $(10,000$ shares$)$

$(260,000)$

Total Stockholders' Equity

$$1,205,000$ During $2022,$ Vinny completed the following$$ transactions:

November $9$: Purchased $3$ comma $400$ shares of its own stock to be held in the treasury. The cost per share was $ $26.$

times

November $17$: Declared and paid a cash dividend of $ $8$ per share.

times

November $30$: Sold $1$ comma $100$ treasury shares for $$$$22$ per share. Assume FIFO is used.

times

December $31$: Declared and paid a cash dividend of $ $8$ per share.

times

December $31$: Wrote down an$$ available$-$for$-$sale debt investment by $ $23$ comma $300.$

times

December $31$: Reported $ $45$ comma $000$ net income for the year and closed net$$ income, other comprehensive income and dividend accounts.

Requirement a$.$ Prepare the journal entries required to reflect the transactions. $($Record debits$$ first, then credits. Exclude explanations from any journal$$ entries.$)$

November $9,2022$: Purchased $3$ comma $400$ shares of its own stock to be held in the treasury. The cost per share was $ $26.$

Account

November $9,2022$

Treasury Stock

$88,400$

Cash

$88,400$

Part $2$

November $17,2022$: Declared and paid a cash dividend of $ $8$ per share.

Account

November $17,2022$

Retained Earnings

$440,000$

Cash Dividend Payable $-$ Common Stock

$440,000$

Part $3$

November $30,2022$: Sold $1$ comma $100$ treasury shares for $$$$22$ per share. Assume FIFO is used.

Account

November $30,2022$

Cash

$24,200$

Retained Earnings

$4,400$

Treasury Stock

$28,600$

Part $4$

December $31,2022(1)$: Declared and paid a cash dividend of $ $8$ per share.

Account

December $31,2022$

Retained Earnings

$431,200$

Cash

$431,200$

Part $5$

December $31,2022(2)$: Wrote down an$$ available$-$for$-$sale debt investment by $ $23$ comma $300.$

Account

December $31,2022$

Unrealized Loss $-$ Other Comprehensive Income

$23,300$

Fair Value Adjustment$-$Available$-$for$-$Sale Debt Investments

$23,300$

Part $6$

December $31,2022$: Reported $ $45$ comma $000$ net income for the year and closed net$$ income, other comprehensive income and dividend accounts.

December $31,2022(3)$: Prepare the entry to close net income.

Account

December $31,2022$

Income Summary

Retained Earnings

Part $7$

December $31,2022(4)$: Prepare the entry to close out all dividends declared accounts.

Account

December $31,2022$

Retained Earnings

$871,200$

Cash Dividend Payable $-$ Common Stock

$871,200$

Part $8$

December $31,2022(5)$: Prepare the entry to close out other comprehensive income.

Account

December $31,2022$

Accumulated Other Comprehensive Income

$23,300$

Retained Earnings

$23,300$

Part $9$

Requirement b$.$ Based on the information$$ provided, prepare the$$ stockholders' equity section for Vinny at December $31,2022,$ and the relevant$$ t$-$accounts.

Begin by posting to the relevant$$ stockholders' equity section$$ t$-$accounts. For accounts with a beginning$$ balance, enter the amount on the first line and label with Beg. Bal. For accounts that do not have a beginning$$ balance, no entry is required. Post each transaction on the first available line. Use the transaction dates provided before each journal entry as posting references to post each transaction to the relevant$$ accounts, then compute the ending balance of each account. Label the ending balances with End. Bal. $($For accounts with a$$ $$0$ balance, select $"$End$.$ Bal.$"$ and enter$"0"$ on the normal balance side of the$$ t$-$account. Abbreviations$$ used: APIC$=$ Additional$$ paid$-$in capital.$)$

Review the journal entries that you prepared in Requirement a$.$LOADING...

Common Stock $-$ Par

APIC in Excess of Par $-$ Common

Retained Earnings

Dividends $-$ Common

Treasury Stock

Accumulated Other Comprehensive Income

Part $10$

Now construct the$$ stockholders' equity section for the$$ year$-$end balance sheet. $($Enter the accounts in the proper order for the$$ stockholders' equity section of the balance sheet. Use parentheses or a minus sign for loss amounts$$ and$/$or numbers to be$$ subtracted.$)$

Review the ending balances of the t$-$accounts that you prepared in Requirement b$.$LOADING...

Stockholders' Equity

Balance

Total Contributed Capital

Total Contributed Capital and Retained Earnings

Total Stockholders' Equity