GL1101-Based on Problem 11-2A LO C3, P2, P3 OnPoint Company reports the followin
ID: 2575113 • Letter: G
Question
GL1101-Based on Problem 11-2A LO C3, P2, P3 OnPoint Company reports the following components of stockholders' equity on December 31, 2016: Common stock-$19 par value, 128,8e shares authorized, 58,8ee shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 588,8ee 75,888 41e,8e8 $ 985,888 In year 2017, the following transactions affected its stockholders' equity accounts. 1 Purchased 5,e8 shares of its own stock at $23 cash per share Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record Feb. 28 Paid the dividend declared on January 5 July 6 Sold 1,98e of its treasury shares at $27 cash per share Aug. 22 Sold 3,18e of its treasury shares at $20 cash per share Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record Oct. 28 Paid the dividend declared on September 5 Dec. 31 Closed the $154,88 credit balance (from net income) in the Income Summary account to Retained Earnings General Statement of Stockholders Impact on General Journal Ledger Trial Balance RE In year 2017, the following transactions affected its stockholders equity accounts. Prepare the necessary journal entries. If no journal entry is required, select "No journal entry required" in the first input box. View transaction listExplanation / Answer
Date Account title Debit Credit Jan.1 Treasury stock 115,000 Cash/Bank 115,000 [Stock purchased= 5000*23] Jan.5 Retained earnings 90000 Dividend payable 90000 [Cash dividend declared] Workings: Shares outstanding 50000 Less: Shares repurchased -5000 Net shares outstanding 45000 Dividend per share 2 Total dividend payable 90000 Feb.28 Dividend payable 90000 Cash/Bank 90000 [Dividend paid] July.6 Cash/Bank 51,300 1900*27 Treasury stock 43,700 1900*23 Additional paid in capital- Treasury stock 7600 1900*4 [Shares purchased at 23, sold for 27 and excess 4 recorded in additional paid in capital-T/s account] Aug.22 Cash/Bank 62,000 3100*20 Treasury stock 43,700 3100*23 Additional paid in capital- Treasury stock 9300 3100*3 [Shares purchased at 23, sold for 20 and loss 4 recorded in additional paid in capital-T/s account] Sep.5 Retained earnings 100000 Dividend payable 100000 [Cash dividend declared] Workings: Shares outstanding 45000 Add: Tresury stock resold 5000 Net shares outstanding 50000 Dividend per share 2 Total dividend payable 100000 Oct.28 Dividend payable 100000 Cash/Bank 100000 [Dividend paid] Dec.31 Profit and loss/ Income summary A/c 154000 Retained earnings 154000 [Closed income summary account]
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