I am having a hard time calculating the answers, please show the working outs thoroughly please
Context Corporation reports the following components of stockholders’ equity on December 31, 2011.
Common stock—$20 par value, 100,000 shares authorized,
55,000 shares issued and outstanding $1,100,000
Paid-in capital in excess of par value, common stock$70,000
Retained earnings $400,000
Total stockholders' equity$1,570,000
In year 2012, the following transactions affected its stockholders’ equity accounts.
Jan.1 Purchased 5,000 shares of its own stock at $20 cash per share.
Jan.5 Directors declared a $4 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
Feb.28 Paid the dividend declared on January 5.
July 6 Sold 1,875 of its treasury shares at $24 cash per share.
Aug.22 Sold 3,125 of its treasury shares at $17 cash per share.
Sept.5 Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.28 Paid the dividend declared on September 5.
Dec.31 Closed the $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
1. Prepare journal entries to record each of these transactions for 2012.
2. Prepare a statement of retained earnings for the year ended December 31, 2012.
3. Prepare the stockholders' equity section of the company’s balance sheet as of December 31, 2010.
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