Question

how you get Sept 9? in connect, HW is the total of numbers shares times 2?is that right? and I want t account and statements of stockholder Eq. also close the RE with income summary 52,000. thanks

Corporation reports the following components of stockholders' equity at December 31, 2018: Common stock, $25 par Paid-in capital in excess of par, common stock Retained earnings Total stockholders' equity $ 750,000 50,000 340,000 $1,140,000 During 2019, the following transactions affected its stockholders' equity accounts: Jan. 2 Purchased 3,000 shares of its own stock at $25 cash per share Directors declared a $1.50 per share cash dividend; date of record on February 9 with a date o Jan. 7 payment on Feburary 28 Feb. 28 Paid the dividend declared on January 7 Jul. 9 Sold 1,200 of its treasury shares at $30 per share Aug. 27 Sold 1,500 of its treasury shares at $20 per share Directors declared a $2 per share cash dividend; date of record on September 23 with a date o Sep. 9 payment on October 22

Answer 1

Date Account Debit Credit Jan.02 $ 75,000 Treasury Stock Cash (Being 3000 Treasury stock purchased @$25 per stock) $ 75,000 Jan.7 $ 40,500 $ 40,500 Retained Earnings Dividend Payable (30000-3000) *$1.5 (Being Dividend declared) Common Stock at the beginning=30000 Treasury Stock Purchased-3000 Feb.28 $ 40,500 Dividend Payable Cash (Being Dividend paid) $ 40,500 Jul.9 $ 36,000 $ Cash (1200*$30) Treasury Stock (1200*$25) Paid in Capital from sale of treasury stock (Being 1200 Treasury stock sold) $ $ 30,000 6,000 Aug.27 Cash (1500*$20) Paid in Capital from sale of treasury stock Retained earnings Treasury Stock (1500*$25) (Being 1500 Treasury stock sold) $ $ $ 30,000 6,000 1,500 $ 37,500

Sep.9 $ 59,400 Retained Earnings Dividend Payable (Being Dividend declared) (30000-3000+1200+1500) *$2 $ 59,400 Oct.22 $ 59,400 Dividend Payable Cash (Being Dividend paid) $ 59,400 Dec.31 $ 52,000 Income Summary Retained Earnings (to close income summary account) $ 52,000

Common Stock Jan.1 Paid in Capital from sale of treasury stock Aug.27 $ 6,000 Jul.9 $ 6,000 $ 7,50,000 Dec.31 $ Dec.31 $ 7,50,000 $ 3,40,000 Jan.7 Aug.27 Sep.9 $ $ $ Retained Earnings 40,500 Jan.1 1,500 59,400 Dec.31 Dec.31 Dividends Payable Jan.7 40,500 Sep.9 59,400 $ $ 40,500 59,400 Feb.28 Oct.22 $ $ $ $ 52,000 2,90,600 Dec.31 $ Paid-In Capital in Excess of Par Value-Common Stock Jan.1 $ 50,000 Dec.31 $ 50,000 Jan.02 $ Treasury Stock 75,000 Jul.9 Aug.27 7,500 $ $ 30,000 37,500 Dec.31 $

Stockholders' Equity Section of Balance Sheet Stockholders' Equity Paid in Capital Common Stock Paid-In Capital in Excess of Par Value-Common Stock Additional Paid-In Capital-Treasury Stock Total Paid in Capital Retained Earnings Sub Total Less: Treasury Stock at cost Total Stockholders' Equity $ 7,50,000 $ 50,000 $ $ 8,00,000 $ 2,90,600 $ 10,90,600 $ 7,500 $ 10,83,100 January 1, Purchase of treasury stock Sale of treasury stock Dividends Net income December 31, Statement of Stockholders Equity Common Paid-in Capital Paid-in Capital Retained Treasury Total Stock in excess from sale of Earnings Stock Shareholders' of par value Treasury Stock Equity Common Stock $ 7,50,000 $ 50,000 $ 3,40,000 $ $ 11,40,000 $ -75,000 $ -75,000 $ -1,500 $ 67,500 $ 66,000 $ -99,900 $ -99,900 $ 52,000 $ 52,000 $ 7,50,000 $ 50,000 $ $ 2,90,600 $ -7,500 $ 10,83,100

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