The balance sheet of Lennox Health Foods, at December 31, 2011, reported 120,000 shares of no-par common
Question:
Mar 15 Purchased 9,000 shares of treasury stock at $8 per share.
Apr 30 Distributed a 10% stock dividend on the outstanding shares of common stock. The market value of common stock was $9 per share.
Dec 31 Earned net income of $110,000 during the year. Closed net income to Retained earnings
Requirements
1. Record the transactions in the general journal. Explanations are not required.
2. Prepare the stockholders’ equity section of Lennox Health Foods’ balance sheet at December 31, 2012.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For 
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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