Question

Alexander Corporation reports the following components of stockholders' equity on December 31, 2016: Common stock-$25 par value, 78, 000 shares authorized, $1, 125, 69s 99, 800 392,000 45, 000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $1, 607,000e in year 2017, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 4, 580 shares of its own stock at $25 cash per share ors declared a 1.s0 per share cash dividend payable on February 28 to the February 9 stockholders of Feb. 28 Paid the dividend declared on January 7 July 9 Sold 1, 800 of its treasury shares at s30 cash per share Aug. 27 Sold 2,2s8 of its treasury shares at $20 cash per share Sept. 9 directors declared a $2 per share cash dividend payable on october 22 to the Septenber 23 stockholders of oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $67,998 credit balance (from net i ncone) in the Income Surnary account to Retained Earnings 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement 3. Prepare of retained earnings for the year ended December 31, 2017 e 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. 9

Answer 1

1	Date	Account Tittle and Explaination	Debit	Credit
	Jan-02	Trasury Stock, Common (4,500 X $25)	$   1,12,500
		Cash		$ 1,12,500
	Jan-07	Retained earnings (40,500 X $1.50 per share)	$       60,750
		Common dividend payable		$     60,750
		(45,000 - 4,500 = 40,500 shares)
	Feb-28	Common dividend payable	$       60,750
		Cash		$     60,750
	Jul-09	Cash (1,800 X $30)	$       54,000
		Trasury Stock, Common (1,800 X $25)		$     45,000
		Paid in capital, Treasury Stock		$        9,000
	Aug-27	Cash (2,250 X $20)	$       45,000
		Paid in capital, Treasury Stock	$         9,000
		Retained earnings	$         2,250
		Trasury Stock, Common (2,250 X $25)		$     56,250
		Note: Paid in capital, Treasury Stock can never had the ending balance
	Sep-09	Retained earnings (44,550 shares X $2)	$       89,100
		Common dividend payable		$     89,100
		4,500 shares - (1,800 shares + 2,250 shares) = 450 shares
		45,000 shares - 450 shares = 44,550
	Oct-22	Common dividend payable	$       89,100
		Cash		$     89,100
	Dec-31	Income Summary	$       67,000
		Retained Earnings		$     67,000
2	Alexander Corporation
	Statement of Retained Earnings
	For the year ended December 31, 2017
		Retained Earnings, December 31, 2016	$   3,92,000
	Add:	Net Income	$       67,000
			$   4,59,000
	Less:	Cash dividend declared (Jan 7 + Sep 9)	$   1,49,850
	Less:	Treasury stock reinsurance (Aug 27)	$         2,250
		Retained Earnings, December 31, 2017	$   3,06,900
3	Alexander Corporation
	Statement of Retained Earnings
	For the year ended December 31, 2017
		Common stock - $25 par value 70,000 shares authorizes, 45,000 shares issued and 44,550 shares outstanding	$ 11,25,000	(Given)
	Add:	Paid in capital in excess of par value	$       90,000	(Given)
	Add:	Retained earnings	$   3,06,900	(calculated in part 2)
	Less:	Treasury stock (450 X $25)	$       11,250
		Total Stockholder's equity	$ 15,10,650