The balance sheet of Goldstein Management Consulting, Inc. at December 31, 2013, reported the following stockholders equity:

Question:

The balance sheet of Goldstein Management Consulting, Inc. at December 31, 2013, reported the following stockholders’ equity:

Stockholders’ Equity

Paid- In Capital:

Common Stock—$ 10 Par Value; 200,000 shares authorized,

15,000 shares issued and outstanding ............. $1,50,000

Paid- In Capital in Excess of Par— Common .......... 310,000

Total Paid- In Capital .................... 460,000

Retained Earnings .................... 162,000

Total Stockholders’ Equity ................. $ 622,000

During 2014, Goldstein completed the following selected transactions:

Feb. 6 Declared a 5% stock dividend on common stock. The market value of Goldstein’s stock was $ 21 per share.

15 Distributed the stock dividend.

Jul. 29 Purchased 2,300 shares of treasury stock at $ 21 per share.

Nov. 27 Declared a $ 0.10 per share cash dividend on the common stock outstanding.

Requirements

1. Record the transactions in the general journal.

2. Prepare a retained earnings statement for the year ended December 31, 2014. Assume Goldstein’s net income for the year was $ 81,000.

3. Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.

Common Stock
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