I have a question on ACCT 2301. Thank you! bAssignment 11E (B pts ntpx? =0.63158
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I have a question on ACCT 2301. Thank you!
bAssignment 11E (B pts ntpx? =0.631582685862/09 1525242101543 ACCOUNTING (6th): 2018SP ACCT 2301-23001 Assignment 1B (30 pts) instructions I help Question 7 (of 12) Save & Exit Submit 6.30 points Exercise 11-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders equity on December 31, 2015: Common stock- $25 par value, 60,000 shares authorized, 36,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings S 900,000 72.000 361,000 Total stockholders equity 5 1,333,000 In year 2016, the following transactions affected its stockholders equity accounts. Jan 2 Purchased 3,600 shares of its own stock at $25 cash per share Jan. 7 Directors declared a $1.50 per share cash dividend payable on Feb. 28 to the Feb. 9 stcckholders of record. Feb. 28 Paid the dividend declared on January 7 July 9 Sold 1,440 of its treasury shares at $30 cash per share. Aug, 27 Sold 1,800 of its treasury shares at $20 cash per share Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stcckholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $58,000 credit balance (from net income) in the Income Summary aocount to O Type here to search w? 130 AM ???ENG 5/2/2018Explanation / Answer
1) Journal Entries: ( In $) Date Account Titles & Explanations Debit Credit 01/02/2016 Treasury Stock 90000 Cash 90000 (purchase of 3600 common stock shares @25) 01/07/2016 Retained Earnings 48600 Dividend Payable (36000-3600)*1.5 48600 (cash dividend declared @ $1.5 per share) 2/28/2016 Dividend payable 48600 Cash 48600 (payment of dividend declared) 07/09/2016 Cash 43200 Treasury Stock (1440*25) 36000 Paid in capital in excess of par value-Treasury Stock 7200 (1440 treasury stock sold at $30) 8/27/2016 Cash (1800*20) 36000 Paid in capital in excess of par value-Treasury Stock 7200 Retained Earnings 1800 Treasury Stock (1800*25) 45000 (purchase of 1800 treasury shares at $20) 09/09/2016 Retained Earnings 71280 Dividend Payable (35640*$2) 71280 (dividend of $2 declared-on 35640 shares outstanding) 10/22/2016 Dividend Payable 71280 Cash 71280 (dividend paid in cash) 12/31/2016 Income Summary 58000 Retained Earnings 58000 (net income closed to retained earnings) 2) Statement of Retained Earnings for the year ended 31st December, 2016. Balance as on 1.1.2016 361000 Net Income for the year 58000 419000 Cash Dividend paid ($48600+71280) -119880 Treasury stock sold below cost -1800 Balance as on 12.31.2016 716320 3) Stockholders' Equity as on December 31, 2016: Common Stock $25 par value, 60000 shares authorized, 36000 shares issued and outstanding 900000 Paid in capital in excess of par value-Common stock 72000 Total paid in capital 972000 Retained Earnings 361000 Total paid in capital & Retained Earnings 1333000 Less: Cost of Treasury Stock-360 shares outstanding -9000 Total Stockholders' Equity 1324000
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