Washington Company has the following stockholders' equity accounts at December 31st, 2014.
Common Stock ($100 par value, authorized 8,000 shares) $480,000
Retained Earnings $294,000
1) Prepare entries in journal form to record the following transactions, which took place during 2015:
a) 280 shares of the outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost
method).
b) A $20 per share cash dividend was declared.
c) The dividend declared in (b) above was paid.
d) The treasury shares purchased in (a) above were resold at $102 per share.
e) 500 shares of the outstanding stock were purchased at $105 per share.
f) 350 of the shares purchased in (e) above were resold at $96 per share.
2) Prepare the stockholders' equity section of Washington Company's balance sheet after giving effect to these transactions, assuming that the net income for 2015 was $94,000. State law requires the restriction of retained earnings for the amount of treasury stock.
Washington Company has the following stockholders' equity accounts at December 31st, 2014.
Common Stock ($100 par value, authorized 8,000 shares) $480,000
Retained Earnings $294,000
1) Prepare entries in journal form to record the following transactions, which took place during 2015:
a) 280 shares of the outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost
method).
b) A $20 per share cash dividend was declared.
c) The dividend declared in (b) above was paid.
d) The treasury shares purchased in (a) above were resold at $102 per share.
e) 500 shares of the outstanding stock were purchased at $105 per share.
f) 350 of the shares purchased in (e) above were resold at $96 per share.
2) Prepare the stockholders' equity section of Washington Company's balance sheet after giving effect to these transactions, assuming that the net income for 2015 was $94,000. State law requires the restriction of retained earnings for the amount of treasury stock.
Related questions
Exercise 11-2 Sheridan Company had these transactions during the current period. June 12 Issued 84,000 shares of $1 par value common stock for cash of $315,000. July 11 Issued 3,400 shares of $102 par value preferred stock for cash at $107 per share. Nov. 28 Purchased 1,350 shares of treasury stock for $8,150.
Prepare the journal entries for the Sheridan Company transactions shown above.
On January 1, Marigold Corp. had 61,700 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
| Apr. 1 | Issued 12,600 additional shares of common stock for $12 per share. | |
| June 15 | Declared a cash dividend of $1.50 per share to stockholders of record on June 30. | |
| July 10 | Paid the $1.50 cash dividend. | |
| Dec. 1 | Issued 5,600 additional shares of common stock for $11 per share. | |
| Dec. 15 | Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31. |
| (a) | Prepare the entries, if any, on each of the three dates that involved dividends. |
