Homework Problems Alexander Corporation reports the followin

Homework Problems Alexander Corporation reports the following components of stockholders\' equity on December 31, 2016 Conmon stock-$25 par value, 50,000 shares authorized 0,000 shares issued and outatanding Paid-in capital in excess of par value, conmon stock 750,000 50,000 340,000 Total stockholders\' equity 1,140,000 In year 2017, the foilowing transactions affected its stockholders\' equity accounts 2 Purchased 3,000 shares of its own tock at $25 cash per share. Jan. an. 7 pirectors declared $1.50 per share cash dividend payable on February 28 to the February 9 stoekholders of Feb. 28 raid the dividend declared on January 200 of its treasry shares at 530 cash per share. Aug 27 Sold 1,500 of its treasury shares at $20 cash per share. Sept. 9 Directors declared $2 per share eash dividend payable on October 22 to the September 23 stockholders of oet. 22 Paid the dividend declared on Septenber 3. De. 31 Closed the $52,009 eredit balance (f rom ) in the Income Summary account to Retained Earnings. 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 Complete this question by entering your answers in the tabs below. d Required 2equred 3 Prepare journal entries to record each of these transactions for 2017

Solution

Alexander Corporation Journal Entries December 31st 2017 Date Particular Debit Credit 2-Jan Treasury Stock $        75,000.00    To Cash $ 75,000.00 (Being amount of Purchases of its 3000 own stock @$25) 7-Jan Retained Earnings $        40,500.00    To common stock dividend Payable $ 40,500.00 (Being amount of Dividend declared ((30000 shares-3000 shares) @$1.50 per shares) 28-Feb Common stock dividend Payable $        40,500.00     To Cash $ 40,500.00 (Being amount of dividend paid declared on 7th Jan) 9-Jun Cash A/c=(1200 shares @30) $        36,000.00      To Treasury Stock=(1200@25) $ 30,000.00      To Paid in Capital excess of Par=(1200@$5) $    6,000.00 (Being amount of sale of 1200 treasury stock @$30) 27-Aug Cash $        30,000.00 Paid in capital excess of par $          6,000.00 Retained Earnings $          1,500.00 Treasury Stock $ 37,500.00 (Being amount of sale of 1500 Treasury stock @20) 9-Sep Retained Earnings $        59,400.00     To Common Stock dividend Payable $ 59,400.00 (Being amount of dividdnd declared on (30000-300)=29700 shares @$2) 22-Oct `Common Stock dividend Payable $        59,400.00      To Cash $ 59,400.00 (Being amount of divdend paid declared on 9th Septemeber) 31st Dec Income Summary $        52,000.00     To Retained Earnings $ 52,000.00 (Being amount transfer from income summary to retained earnings account) Alexander Corporation Statement of Retained For the Year ended Dec 31st 2017 Beginning Balance of Retained Earnings $      340,000.00 Add: Net Income $        52,000.00 Total $      392,000.00 Less: Cash dividend($40500+59400) $      (99,900.00) Less: Reissu of Treasury Stock $        (1,500.00) Ending Balance of Retained Earnings $      290,600.00 Alexander Corporation Stockholder\'s Equity Section of Balance Sheet December 31st,2017 Common Stock(30000 shares @ $25 Per share) $      750,000.00 Paid in capital excess of par-common stock $        50,000.00 Retained Earnings $      290,600.00 Less: cost of Treasury stock $        (7,500.00) Total Stockholder\'s Equity $ 1,083,100.00