Alexander Corporation reports the following components of st

Alexander Corporation reports the following components of stockholders\' equity on December 31, 2016: Common stock-$25 par value, 78, 000 shares authorized, $1, 125, 69s 99, 800 392,000 45, 000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders\' equity $1, 607,000e in year 2017, the following transactions affected its stockholders\' equity accounts. Jan. 2 Purchased 4, 580 shares of its own stock at $25 cash per share ors declared a 1.s0 per share cash dividend payable on February 28 to the February 9 stockholders of Feb. 28 Paid the dividend declared on January 7 July 9 Sold 1, 800 of its treasury shares at s30 cash per share Aug. 27 Sold 2,2s8 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 Septenber 23 stockholders of oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $67,998 credit balance (from net i ncone) in the Income Surnary account to Retained Earnings 1. Prepare journal entries to record each of these transactions for 2017 2. Prepare a statement 3. Prepare of retained earnings for the year ended December 31, 2017 e the stockholders\' equity section of the company\'s balance sheet as of December 31, 2017 Complete this question by entering your answers in the tabs below. 9

Solution

1 Date Account Tittle and Explaination Debit Credit Jan-02 Trasury Stock, Common (4,500 X $25) $   1,12,500 Cash $ 1,12,500 Jan-07 Retained earnings (40,500 X $1.50 per share) $       60,750 Common dividend payable $     60,750 (45,000 - 4,500 = 40,500 shares) Feb-28 Common dividend payable $       60,750 Cash $     60,750 Jul-09 Cash (1,800 X $30) $       54,000 Trasury Stock, Common (1,800 X $25) $     45,000 Paid in capital, Treasury Stock $        9,000 Aug-27 Cash (2,250 X $20) $       45,000 Paid in capital, Treasury Stock $         9,000 Retained earnings $         2,250 Trasury Stock, Common (2,250 X $25) $     56,250 Note: Paid in capital, Treasury Stock can never had the ending balance Sep-09 Retained earnings (44,550 shares X $2) $       89,100 Common dividend payable $     89,100 4,500 shares - (1,800 shares + 2,250 shares) = 450 shares 45,000 shares - 450 shares = 44,550 Oct-22 Common dividend payable $       89,100 Cash $     89,100 Dec-31 Income Summary $       67,000 Retained Earnings $     67,000 2 Alexander Corporation Statement of Retained Earnings For the year ended December 31, 2017 Retained Earnings, December 31, 2016 $   3,92,000 Add: Net Income $       67,000 $   4,59,000 Less: Cash dividend declared (Jan 7 + Sep 9) $   1,49,850 Less: Treasury stock reinsurance (Aug 27) $         2,250 Retained Earnings, December 31, 2017 $   3,06,900 3 Alexander Corporation Statement of Retained Earnings For the year ended December 31, 2017 Common stock - $25 par value 70,000 shares authorizes, 45,000 shares issued and 44,550 shares outstanding $ 11,25,000 (Given) Add: Paid in capital in excess of par value $       90,000 (Given) Add: Retained earnings $   3,06,900 (calculated in part 2) Less: Treasury stock (450 X $25) $       11,250 Total Stockholder\'s equity $ 15,10,650