Question: alexander corporation reports the following components of stockholders equity on...
Alexander Corporation reports the following components of
stockholders’ equity on December 31, 2016:
|Common stock—$25 par value, 70,000 shares authorized,
44,000 shares issued and outstanding
|Paid-in capital in excess of par value, common stock||88,000|
|Total stockholders’ equity||$||1,577,000|
In year 2017, the following transactions affected its stockholders’ equity accounts.
|Jan.||2||Purchased 4,400 shares of its own stock at $25 cash per share.|
|Jan.||7||Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record.|
|Feb.||28||Paid the dividend declared on January 7.|
|July||9||Sold 1,760 of its treasury shares at $30 cash per share.|
|Aug.||27||Sold 2,200 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 $66,000 credit balance (from net income) in the Income Summary account to Retained Earnings.|
1. Prepare journal entries to record each of these transactions for 2017.
2. Prepare a statement of retained earnings for the year ended December 31, 2017.
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2017.
Record the purchase 4,400 shares of its own common stock for $25 cash per share.
Record the declaration of a cash dividend of $1.50 per share.
Record the payment of the cash dividend declared on January 7.
Record the reissue of 1,760 shares of the treasury stock for $30 cash per share.
Record the reissue of 2,200 shares of the treasury stock for $20 cash per share.
Record the declaration of a cash dividend of $2 per share.
Record the payment of the cash dividend declared on September 9.
Record the transfer of the credit balance of $66,000 in the income summary account to the retained earnings account.