1. journal entries 2. statement of retained earning 3. stockholders equity Alexa
ID: 2586334 • Letter: 1
Question
1. journal entries
2. statement of retained earning
3. stockholders equity
Alexander Corporation reports the following components of stockholders' equity on December 31, 2015: Common stock-$25 par value, 70,000 shares authorized, 49,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings $1,225,000 98,000 406,000 Total stockholders' equity $ 1,729,000 In year 2016, the following transactions affected its stockholders' equity accounts Jan. 2 Purchased 4,900 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. S9 Feb. 28 July 9 Aug. 27 Sept. 9 stockholders of record. Paid the dividend declared on January 7 Sold 1,960 of its treasury shares at $30 cash per share Sold 2,450 of its treasury shares at $20 cash per share Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9 Dec. 31 Closed the $71,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required 1. Prepare jounal entries to record each of these transactions for 2016 2. Prepare a statement of retained earnings for the year ended December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) ALEXANDER CORPORATION Statement of Retained Earnings For Year Ended December 31, 2016 3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) ALEXANDER CORPORATION Stockholders' Equity Section of the Balance Sheet December 31, 2016 Total stockholders' equityExplanation / Answer
SOLUTION
(A) Journal Entries-
(B) Statement of Retained Earnings-
(C) Stockholder's Equity Section-
Date Accounts title and Explanations Debit ($) Credit ($) Jan.2 Treasury stock, common (4,900 *$25) 122,500 Cash 122,500 Jan. 7 Retained Earnings [(49,000 - 4,900)*$1.50] 66,150 Common dividend payable 66,150 Feb.28 Common dividend payable 66,150 Cash 66,150 July 9 Cash (1,960 *$30) 58,800 Treasury stock, common (1,960 * $25) 49,000 Paid-in capital, treasury stock 9,800 Aug. 27 Cash (2,450 * $20) 49,000 Paid-in capital, treasury stock 9,800 Retained earnings 5,450 Treasury stock, common (2,450 * $25) 61,250 Sept. 9 Retained earnings (49,000 * $2) 98,000 Common dividend payable 98,000 Oct.22 Common dividend payable 98,000 Cash 98,000 Dec. 31 Income Summary 71,000 Retained earnings 71,000Related Questions
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