Question

Y19 AustinC Where applicable, all numbers should be cell references or formulas (ie SUM). Full credit will not be given for numbers typed into cells Proper formatting should also be applied ie. Numbers are formatted as accounting", underlines and double underlines should be utilized where applicat Statement of Retained For Year Ended December 31,2017 At the beginning of 2015, Austin Corporation's stockholders equity consisted of the following: 1, 2016 Common stock, $25 par value, 100,000 shares authorized, 50,000 shares issued Paid-In capital in excess of par valuecommon stock Retained earnings 5 1,250,000 70,000 430,000 $1,750,000 Total Total stockholders equity 10 During the year,the company completed these transactions 12 Retained earnings, December 31, 2017 Jan Purchased S,S00 shares of treasury stock at $25 per share. 5 The directors declared a $2 per share cash dividend payable on Feb 28 to the Feb 5 stockholders of record Feb 28 Paid the dividend declared on Jan 5, Austin Co July 6 Aug 22 Sept5 Oct 28 Dec 31 Sold 2,063 of the treasury shares at $29 per share 18 Statement of Stockholders' For Year Ended December 31,2017 Sold 3,437 ofthetreasury shares at $22 per share Common stock, $25 par value, 30,000 shares authorized, The directors voted a $2 per share cash dividend payable on Oct 28 to the Sept 25 stockholders of record. Paid the dividend declared on Sept Closed the Income Summary account and carried the company's $428,000 net incometo Retained Earnings 23 Total contributed c Total stockholders' equity TAB INSTRUCTIONS: (2) Preparea retained earnings statement for the year and the stockholders' equity section of the company'syear end balance sheet. 31

Answer 1

The journal entries made by you are correct and the required statements are given below -

Austin Corporation statement of retained earnings for the year ended december 31,2017 $430,000 retained earnings, january 1, 2015 additions: net income $ 428,000 $858,000 total deductions: dividend loss on sale of treasury stock retained earnings, december 31, 2017 189,000 2,059 $ 191,059 $ 666,941 Austin Corporation statement of stockholders' equit for the year ended december 31,2017 common stock, $25 par value, 100,000 shares authorized, 50,000 shares issued common stock $ 1,250,000 $ 70,000 $ 1,320,000 $ 666,941 $ 1,986,941 aid in capital in excess of par value common stock total contributed capital retained earnings total stockholders' equit