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Problem 13-2A Cash dividends, treasury stock, and...

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Problem 13-2A Cash dividends, treasury stock, and statement of retained earnings L.O. C3, P2, P3 [The following information applies to the questions displayed below.] Context Corporation reports the following components of stockholders? equity on December 31, 2011. Common stock?$20 par value, 100,000 shares authorized, 45,000 shares issued and outstanding $ 900,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 430,000 Total stockholders' equity $ 1,410,000 In year 2012, the following transactions affected its stockholders? equity accounts. Jan. 1 Purchased 4,500 shares of its own stock at $25 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 1,688 of its treasury shares at $29 cash per share. Aug. 22 Sold 2,812 of its treasury shares at $22 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Problem 13-2A Part 1 Required: 1. Prepare journal entries to record each of these transactions for 2012. (Omit the "$" sign in your response.) Date General Journal Debit Credit Jan. 1 Jan. 5 Feb. 28 July 6 Aug. 22 Sept. 5 Oct. 28 Dec. 31 Problem 13-2A Part 2 2. Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated by a minus sign. Omit the "$" sign in your response.) CONTEXT CORPORATION Statement of Retained Earnings For Year Ended December 31, 2012 Retained earnings, Dec. 31, 2011 $ Retained earnings, Dec. 31, 2012 $

 

Paper#9426 | Written in 18-Jul-2015

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