Reference no: EM132968084
Question - Alexander Corporation reports the following components of stockholders' equity at December 31, 2018.
Common stock-$25 par value, 60,000 shares authorized, 35,000 shares issued and outstanding $875,000
Paid-in capital in excess of par value, common stock 70,000
Retained earnings 357,000
Total stockholders' equity $1,302,000
During the year, the following transactions affected its stockholders' equity accounts.
Jan. 2 Purchased 3,500 shares of its own stock at $25 cash per share.
Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record.
Feb. 28 Paid the dividend declared on January 7.
July 9 Sold 1,400 of its treasury shares at $30 cash per share.
Aug. 27 Sold 1,750 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 September 23 stockholders of record.
Oct. 22 Paid the dividend declared on September 9.
Dec. 31 Closed the $57,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required -
1. Prepare journal entries to record each of these transactions.
2. Prepare a statement of retained earnings for the year ended December 31, 2019.
3. Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019.