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—$25 par value, 60,000 shares authorized,
39,000 shares issued and outstanding
|Paid-in capital in excess of par value, common stock||78,000|
|Total stockholders’ equity||$||1,424,000|
In year 2017, the following transactions affected its stockholders’ equity accounts.
|Jan.||2||Purchased 3,900 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 1,560 of its treasury shares at $30 cash per share.|
|Aug.||27||Sold 1,950 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 $61,000 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.