(L.OBJ. 1, 3) Journalizing dividend and treasury stock transactions, and preparing stock...

(L.OBJ. 1, 3) Journalizing dividend and treasury stock transactions, and preparing stockholders’ equity [10—30 min]

The balance sheet of Mundo Health Foods, at December 31, 2011, reported 90,000 shares of no-par common stock authorized with 50,000 shares issued and a Common stock balance of $170,000. Retained Earnings had a balance of $140,000. During 2012 the company completed the following selected transactions:

Requirements

1. Record the transactions in the general journal. Explanations are not required.

2. Prepare the stockholders’ equity section of Mundo Health Food’s balance sheet at December 31, 2012.