hler Corporation reports the following components of stockholders equity on Dece
ID: 2581948 • Letter: H
Question
hler Corporation reports the following components of stockholders equity on December 31, 2016 10 6e, e00 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1,208,800 70,800 $1,640,eee In year 2017, the following transactions affected its stockholders' equity accounts Jan. 1 Purchased 5,500 shares of its own stock at $25 cash per share an. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of Feb. 28 Paid the dividend declared on January 5 July 6 Sold 2,063 of its treasury shares at $29 cash per share Aug. 22 Sold 3,437 of its treasury shares at $22 cash per share Sept. Directors declared a S2 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. 2 Required 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement of retained earnings for the year ended December 31, 2017 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31. 2017 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions for 2017 R of 13 Next >Explanation / Answer
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Date Account Titles and Explanation Debit Credit Jan. 1 Treasury stock (5500 x $25) 137500 Cash 137500 (To record purchase of treasury stock) Jan. 2 Retained earnings 109000 Dividend payable [$2 x (60000 - 5500)] 109000 (To record declaration of cash dividend) Feb. 28 Dividend payable 109000 Cash 109000 (To record payment of cash dividend) Jul. 6 Cash (2063 x $29) 59827 Treasury stock (2063 x $25) 51575 Paid-in capital-Treasury stock (2063 x $4) 8252 (To record sale of treasury stock) Aug. 22 Cash (3437 x $22) 75614 Paid-in capital-Treasury stock 8252 Retained earnings [(3437 x $3) - 8252] 2059 Treasury stock (3437 x $25) 85925 (To record sale of treasury stock) Sep. 5 Retained earnings 120000 Dividend payable ($2 x 60000) 120000 (To record declaration of cash dividend) Oct. 28 Dividend payable 120000 Cash 120000 (To record payment of cash dividend) Dec. 31 Income summary 408000 Retained earnings 408000 (To close net income to retained earnings)Related Questions
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