Reference no: EM132841137

Question - XYZ Co. is a large manufacturer of lighting fixtures and components. Selected account balances from XYZ Co.'s December 31, 2018

Balance Sheet are as follows:

Common Stock ($1 par value, 1,000,000 shares authorized, 775,000 shares outstanding) 775,000

Paid-In Capital in Excess of Par - Common Stock 900,000

Retained Earnings 36,450,000

Treasury Stock (50,000 shares, at cost) 675,000

Selected transactions occurred during 2020.

2/5/2019 Issued 125,000 shares of common stock at $30 per share

5/23/2019 Sold all shares of Treasury Stock for $18 per share

7/2/2019 Declared a 5% stock dividend on common stock. The stock was trading at a price of $27 per share

10/7/2019 Issued shares of stock for the stock dividend declared on July 2.

11/11/2019 Purchased 32,000 shares of treasury stock for $26 per share

12/1/2019 Declared a cash dividend of $0.25 per share on common stock.

12/31/2019 Closed the two dividend accounts to Retained Earnings

Required -

1. Post the 2020 transactions to the correct accounts, and compute ending balances in each account. Note: disregard any debits or credits to Cash.

2. Prepare a Statement of Stockholders' Equity for the year ending December 31, 2019.