ned earnings for the year ended December 31,2011. Required the a statement of re

Question

ned earnings for the year ended December 31,2011. Required the a statement of retained Prepare a stat equity of Sayers Company at January 1,201, is as follows: value of $20 Problem 13-5 Prepare jourmal entries for stock dividend, treasury stock transactions 100,000 shares authorized, 60,000 shares issued Paid-in capital in excess of stated value Appropriation per loan agreement Unappropriated retained earnings Treasury stok (3,000 shares at cost) Common stock- no-par value, stated 1,200,000 200,000 75,200 424,000 and retained earnings appropriation (LO.2,3) (72,000) the following transactions occurred in the order listed: During 2011, 1. Issued 10,000 shares of stock for S368,000 2. Declared 3. Sold 1,000 shares of treasury stock for $43,200. 4. Iss 5. Bought 2,000 shares of treasury stock for $67,200 6. Increased the appropriation by S43,200 $48 per share ued stock certificates for the stock dividend declared in transaction 2 a 4% stock dividend when the market price was per loan agreement. Require Prepare journal entries as necessary for these transactions

Explanation / Answer

Journal Entries no Accounting titles & Explanations Debit Credit 1 Cash 368,000 common stock (10000*20) 200000 paid in capital in excess of stated value 168,000 2) Retained earnings (2680*48) 128640 Common stock dividend distributable(2680*20) 53600 paid in capital in excess of stated value 75040 (60,000+10,000 -3000)*4% 3) cash 43,200 Treasury stock (1000*24) 24,000 paid in capital in excess of stated value 19,200 4) Stock dividend distributable 53,600 Common stock 53,600 5) Treasury stock 67,200 cash 67,200 6) Appropirated retained earnings 43,200 unappropirated retained earnings 43,200

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