Balthus Corp. reports the following components of stockholders equity on December 31, 2009. It completed the following
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Question:
Balthus Corp. reports the following components of stockholders’ equity on December 31, 2009.
It completed the following transactions related to stockholders’ equity in the year 2010.
- Jan. 10 Purchased 40,000 shares of its own stock at $12 cash per share.
- Mar. 2 Directors declared a $1.50 per share cash dividend payable on March 31 to the March 15 stockholders of record.
- Mar. 31 Paid the dividend declared on March 2.
- Nov. 11 Sold 24,000 of its treasury shares at $13 cash per share.
- Nov. 25 Sold 16,000 of its treasury shares at $9.50 cash per share.
- Dec. 1 Directors declared a $2.50 per share cash dividend payable on January 2 to the December 10 stockholders of record.
- Dec. 31 Closed the $1,072,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Required
- 1. Prepare journal entries to record each of these transactions for 2010.
- 2. Prepare a statement of retained earnings for the year ended December 31, 2010.
- 3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2010.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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