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Kroll Corporation reports the following components of stockholders? equity-Exercise 13-18 Cash dividends, treasury stock

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Question;Exercise 13-18 Cash dividends, treasury stock, and statement of retained earnings L.O. C3, P2, P3Kroll Corporation reports the following components of stockholders? equity on December 31, 2011.Common stock?$27 par value, 53,000 shares authorized,43,000 shares issued and outstanding $ 1,161,000Paid-in capital in excess of par value, common stock 57,000Retained earnings 275,000Total stockholders? equity $ 1,493,000In year 2012, the following transactions affected its stockholders? equity accounts.Jan. 2Purchased 3,500 shares of its own stock at $27 cash per share.Jan. 7Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.Feb. 28 Paid the dividend declared on January 7.July 9 Sold 400 of its treasury shares at $32 cash per share.Aug. 27 Sold 3,100 of its treasury shares at $25 cash per share.Sept. 9Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.Oct. 22 Paid the dividend declared on September 9.Dec. 31Closed the $14,000 credit balance (from net income) in the Income Summary account to Retained Earnings.Required:1. Prepare journal entries to record each of these transactions for 2012. (Omit the "$" sign in your response.)Date General Journal Debit CreditJan. 2Jan. 7Feb. 28July 9Aug. 27Sept. 9Oct. 22Dec. 312. Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)KROLL CORPORATIONStatement of Retained EarningsFor Year Ended December 31, 2012$$3. Prepare the stockholders? equity section of the company?s balance sheet as of December 31, 2012. (Omit the "$" sign in your response.)KROLL CORPORATIONStockholders? Equity Section of the Balance SheetDecember 31, 2012$Total stockholders? equity $

 

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