Reference no: EM132877800

Question - The following is the stock holders' equity components of Gujrat Corporation Limited as on 31.12.2019. Common stock-Rs 50 Par value, 100,000 shares authorized and 50,000 shares outstanding and issued Rs 25,00,000 Contributed capital in excess of par value, common shares Rs 5,00,000 Retained Earnings Rs 135,000 Total Stockholder's equity Rs 31,35,000 In the year 2020, following transactions are reported by the company that affect the stock holders' equity: March 13 Purchased 5,000 own shares of common stock at Rs 40 cash per share. March 25 Declared Rs 5 per share cash dividend that is to paid on April 18 to the April 5th stock holders of record. April 18 Paid the dividend decleared on March 25th . August 13 Sold 2,000 shares from the treasury stock at Rs 50 cash per share. August 29 Sold 3,000 shares from the treasury stock at Rs 35 cash per share. October 13 Declared Rs 5 per share cash dividend that is to paid on November 18 to the Nov 5 th stock holders of record. November 18 Paid the dividend decleared on October 13th. December 31 Closed the 313000 debit balance (from net income) in the income summary account to retained earnings.

Required -

1. Prepare journal entries of the above transactions for 2020.

2. Prepare the statement of retained earnings for the year ended 31st December, 2020.

3. Prepare the Stock holder's equity portion of balance sheet for the year ended 31st December, 2020.