Question

Exercise 13-18 Cash dividends, treasury stock, and statement of retained earnings LO C3, P2, P3 Alexander Corporation reports the following components of stockholders' equity on December 31, 2016: 14.32 points e ook Common stock-$25 par value, 50,000 shares authorised, 30,000 shares issued and outstanding Paid-in capital in excess of par valve, conton bok Retained earnings Total stockholders' equity $750,000 50,000 340,000 $1,140,000 Hint Print In year 2017, the following transactions affected its stockholders' equity accounts. References 2 Purchased 3,000 shares of its own stock at 925 con per share. Jan. 7 Directora declared a $1.50 per share cash dividend payable on February 28 to the Tebruary 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 1,200 of its tresury shared at $30 cash per share. Aug 27 Sold 1,500 of its rury shared at 320 ench per share Sept. Directors declared a $2 per share dan dividend payable on telex 22 to the September 2) stockholders of record Det. 22 Paid the dividend declared on September 9. Dec. 31 closed the $52.000 credit balance from the Inco Brary account to Retained Earnings. 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.

Answer 1

Andweg DJournal Entry Pageno Date Particulares 2-Jan Treasury stock Credit Debit $45000 To Cash $45000 (Being 3000 shares of reading Stock Purchailed at $asper share) $ 40, 500 I- Jan Retained earnings To Dividend payable $40,500 [(30000-3009) X1.50 ] (Being dividend declared) - $40,500 To Cash $40,500 (Being dividend paid) 9-July cash (1200x30) $36000 To Treasury stock (coxas) $30,000 To Additional poidin Capital $6,000 (1200xs . Being 1200shared off realay Stock Sold at & as pershare

Caredit IS00 Pageno Date Particulars Debit | 27 Aug Cash (1500x20) $30,000 Additional paid in Capital $6,000 Retained Earnings $ 1500 To Torealarey stock $37,500 C X$25 ) (Being isoo shorse of tready Stock sold at $25 per Share) $59,400 To Dividend payable $ 59,400 [(30000 - 306)x2 Being di vidend decland) 459,400 To Cash ( Being dividend paid) #52000 $52000 CBeing income transfered 9-sep Retained Earnings 22 oct Dividend payable $59400 31-Dec Income Summary To Retained Earnings to retained Earnings

Retained Earnings Pageno ng! :- opening balance isoo Particularl Amount $300000 Add: Income for $52000 2018 Les di-Dividend paid (40500 1517400) $90900 Les?:- Loss on Sale of Treal wey Stock Ending balance of Retained $ 299,600 Earnings 3 ştook holdco Equity flection Particulood Amount stockholder's Equity Common stock - $ as par value 50,000 $750000 Shared authorized 30,000 Share issued and Outstanding Paid in Capital in excess of par $50000 value, Common Stock Total Contributed Capital 9800000 Retained Earnings $299,600 Threewry Stock (300x$as) -$7500 Total Stockholdeo's Equity $1092,100