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Washington Company has the following stockholders' equity accounts at December 31, 2014. Common Stock ($100 par value, authorized 8,090 shares) $527,000 Retained Earnings 305,500 Prepare
Washington Company has the following stockholders' equity accounts at December 31, 2014. Common Stock ($100 par value, authorized 8,090 shares) $527,000 Retained Earnings 305,500 Prepare entries in journal form to record the following transactions, which took place during 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) A $21 per share cash dividend was declared. The dividend declared in (2) above was paid. The treasury shares purchased in (1) above were resold at $102 per share. 520 shares of outstanding stock were purchased at $104 per share. 350 of the shares purchased in (5) above were resold at $96 per share. Prepare the stockholders' equity section of Washington Company's balance sheet after giving effect to these transactions, assuming that the net income for 2015 was $94,900. State law requires restriction of retained earnings for the amount of treasury stock. (Enter account name only and do not provide descriptive information.)
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