Question

Saved 101 - Based on Problem 11-2A LO C3, P2, P3 chez Company reports the following components of stockholders' equity on January 1 Common stock-$10 par value, 120,000 shares authorized, 50,000 shares issued and outstanding Pald.in capital in excess of par value, common stock Retained earnings Total stockholders' equity $500,000 75,00 410.000 $985,000 During the year, the following transactions affected its stockholders' equity accounts Jan. 2 Purchased 5,000 shares of its own stock at $23 cash per share. Jan. 5 Directors declared 52 per share cash dividend payable on February 28 to the February 5 stockholders of red Feb. 23 Pald the dividend declared on January 5. July Sold 1.900 of its treasury shares at 527 cash per share. LE 22 Sold 3,100 of its treasury shares at $20 cash per share. Sept. 5 Directors declared 52 per share cash dividend payable on October 28 to the September 25 stockholders of recor Oct. 28 Paid the dividend declared on September 5, Dec. 31 closed the $312.500 credit balance (from net income in the c a r account to Retained Earnings. Statement of Requirement General Journal General Ledger Thal Balance Stockholders Equity impact on Equity v For each transaction, indicate the impact on total stockholderseguity. Enter decreases to equity as negative es. Verify that total stockholders' equity of December 31, as calculated agrees with the amount reported on the balance sheet Datesano - to Dec 31 impact on it Total Schede E -December 31 5) cors declared a 12 por share cash w F hole of record 26) Patheidend declared on January 5 Stockholdersey decreased ch

Answer 1

Date	Event	Impact on Equity	$
	Total Stockholders Equity, January 1		985,000
Jan 2	Purchase 5,000 shares of its own stock at $ 23 cash per share	Decrease	(115,000)
Jan 5	Directors declared a $ 2 per share........................	Decrease	(90,000)
Feb 28	Paid the dividend declared on Jan 5	No change	0
July 6	Sold 1,900 of its treasury shares at $ 27 per share	Increase	51,300
Aug 22	Sold 3,100 of its treasury shares at $ 20 per share	Increase	62,000
Sep 5	Directors declared a $ 2 per share ...............	Decrease	(100,000)
Oct 28	Paid the dividend declared on Sep 5	No change	0
Dec 31	Closed the $ 312,500 credit balance from net income......	Increase	312,500
	Total Stockholders' Equity, December 31		$ 1,105,800