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Alexander Corporation reports the following components of stockholders??? equity on December 31, 2013;Common stock???$25 par value, 60,000 shares authorized;40,000 shares...

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Alexander Corporation reports the following components of stockholders? equity on December 31, 2013;Common stock?$25 par value, 60,000 shares authorized;40,000 shares issued and outstanding $ 1,000,000;Paid-in capital in excess of par value, common stock 80,000;Retained earnings 375,000;Total stockholders? equity $ 1,455,000;In year 2014, the following transactions affected its stockholders? equity accounts.;Jan. 2;Purchased 4,000 shares of its own stock at $25 cash per share.;Jan. 7;Directors declared a $1.50 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 1,600 of its treasury shares at $30 cash per share.;Aug. 27 Sold 2,000 of its treasury shares at $20 cash per share.;Sept. 9;Directors 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. 31;Closed the $62,000 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 2014.;2.;Prepare a statement of retained earnings for the year ended December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.);3.Prepare the stockholders? equity section of the company?s balance sheet as of December 31, 2014. (Amounts to be deducted should be indicated by a minus sign.)

 

Paper#73635 | Written in 18-Jul-2015

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