At the beginning of January 201X, the stockholders' equity of Plain View Corporation consisted of the following:

Question:

Paid-In Capital:

Common Stock, $24 par value, authorized 48,000 shares, 12,000 shares issued and outstanding

...................................................................................................$288,000

Paid-In Capital in Excess of Par Value-Common..........................................66,000

Total Paid-In Capital by Common Stockholders...........................................354,000

Retained Earnings..............................................................................158,000

Total Stockholders' Equity..................................................................$512,000

1. Record the transactions in general journal form.

2. Prepare the stockholders' equity section at year-end, using the Blueprint as a guide.

3. Prepare a statement of retained earnings at December 31, 201X.

Accounts are provided in the working papers that accompany this text. Be sure to put in the beginning balances.

201X

June 7 Plain View Corporation purchased 1,100 shares of treasury stock at $27.

19 The board of directors voted a $0.30 per share cash dividend payable on July

16 to stockholders of record on July 2.

July 16 Cash dividend declared on June 19 is paid.

Sept. 6 Sold 380 shares of treasury stock at $36 per share.

26 Sold 720 shares of treasury stock at $26 per share.

Oct. 9 The board of directors declared a 6% stock dividend distributable on

November 15 to stockholders of record on November 2. The market value of the stock is currently $39 per share.

Dec. 31 Closed the net income of $56,000 in the Income Summary account to Retained Earnings.

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