Details of this Paper

Problem 13-2A_Context Corporation_Treasury stock

Description

solution


Question

Question;Context Corporation reports the following components of stockholders? equity on December 31, 2011:Common stock?$10 par value, 50,000 shares authorized,20,000 shares issued and outstanding..................... $200,000Contributed capital in excess of par value, common stock........ 30,000Retained earnings..................................... 135,000Total stockholders? equity............................... $365,000In year 2012, the following transactions affected its stockholders? equity accounts:Jan. 1 Purchased 2,000 shares of its own stock at $20 cash per share.Jan. 5 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 January 5.July 6 Sold 750 of its treasury shares at $24 cash per share.Aug. 22 Sold 1,250 of its treasury shares at $17 cash per share.Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September25 stockholders of record.Oct. 28 Paid the dividend declared on September 5.Dec. 31 Closed the $194,000 credit balance (from net income) in the Income Summary account toRetained Earnings.Required1. Prepare journal entries to record 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, 20.

 

Paper#37285 | Written in 18-Jul-2015

Price : $20
SiteLock