Question

Help Save & Exit Submit Check my work B0 Problem 11-2A LO C3, P2, P3 Sanchez Company reports the following components of stockholders' equity on January 1 Common stock-$10 par value, 120,00 shares authorized, se,eee shares issued and outstanding Pald-in capital in excess of par value, common stock Retained earnings s se0,000 75,000 410,000 Total stockholders equity During the vear, the following transactions affected its stockholders equity accounts Jam Jan. Feb July Aug. Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the Septeeber 25 steckholders of recond Oct. 2 Purchased s,000 shares of its oun stock at $23 cash per share. 5 oirectors declared $2 per share cash diwidend payable on February 28 to the February 5 stockholders of recond 28 Paid the dividend declared on January 5, 6 Sold 1,900 of its treasury shares at $27 cash per share. 22 Sold 3,100 of its treasury shares at $20 cash per share. 28 Pald the dividend declared on Septesber 5 31 closed the $312,see credit balance (from net income) in the Income Summary account to etained Earnings Dec General Journal General Ledger Statement of Stockholder RE Impact on Equity Requirement Trial Balance Equity During the year, the following transactions affected its stockholders equity accounts journal entry is required, select "No journal entry required" in the first input box. Prepare the necessary journal entries If no View tansaction list Journal entry worksheet < 1 2 3 4 6 7 Purchased 5.000 shares of its own stock at $23 cash per share Note: Enter debits before credts Debit Credit Dae Account Tale Jan 02 Cash Treasury stock Common Prer 1 of 1 Next

Answer 1

Credit Requirement 1 Date General Journal 02-Jan-19 Treasury Shares (5000*23) Cash (To record purchase of purchase of its own stock) Debit $ 1,15,000 $ 1,15,000 05-Jan-19 90,000 Cash Dividends (45000*2) Cash Dividends Payable (Paid cash dividend) $ 90,000 28-Feb-19 Cash Dividends Payable 90,000 Cash $ 90,000 (Paid cash dividend) 06-Jul-19 51,300 Cash (1900*27) Treasury Stock (1900*23) Paid-in Capital (1900*4) (To record sale of treasury shares) $ $ 43,700 7,600 22-Aug-19 $ $ 62,000 9,300 Cash (3100*20) Paid-in Capital (3100*3) Treasury Stock (3100*23) (To record sale of treasury shares) 71,300 05-Sep-19 $ 1,00,000 Cash Dividends (50000*2) Cash Dividends Payable (Paid cash dividend) $ 1,00,000 28-Oct-19 $ 1,00,000 Cash Dividends Payable Cash (Paid cash dividend) $ 1,00,000 $ 3,12,500 31-Dec-19 Income Summary Retained Earnings |(To record closure of Income Summary to Retained earnings) $ 3,12,500