The following information applies to the questions displayed

The following information applies to the questions displayed below] The annual report for Malibu Beachwear reported the following transactions affecting stockholders\' equity: a. Purchased $350,600 of common stock now held in treasury. b. Declared cash dividends in the amount of $260,300. c. Paid the dividends in (b). e. Closed the Dividends account.

Solution

2) Event General Journal Debit Credit a) Treasury stock 350,600 cash 350,600 b) Cash dividend 260,300 Dividends payable 260,300 c) dividends payable 260,300 cash 260,300 d) Cash (106000*2) 212000 Common stock (106000*.1) 10600 paid in capital in excess of par 201400 e) Retained earnings 260,300 cash dividend 260,300