GL1101 - Based on Problem 11-2A LO C3, P2, P3

Smith Company reports the following components of stockholders equity on December 31, 2016:

Common stock$10 par value, 110,000 shares authorized, 40,000 shares issued and outstanding	$	400,000
Paid-in capital in excess of par value, common stock		60,000
Retained earnings		330,000
Total stockholders' equity	$	790,000

In year 2017, the following transactions affected its stockholders equity accounts.

Jan.		1		Purchased 4,000 shares of its own stock at $23 cash per share.
Jan.		5		Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb.		28		Paid the dividend declared on January 5.
July		6		Sold 1,500 of its treasury shares at $27 cash per share.
Aug.		22		Sold 2,500 of its treasury shares at $20 cash per share.
Sept.		5		Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record.
Oct.		28		Paid the dividend declared on September 5.
Dec.		31		Closed the $338,500 credit balance (from net income) in the Income Summary account to Retained Earnings.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Statement of RE
• Stockholders Equity
• Impact on Equity

General Journal tab - Prepare the necessary journal entries.

Statement of Retained Earnings tab - Prepare the Statement of Retained Earnings for the Smith Corporation for the year ended December 31, 2017.

Stockholders' Equity tab - Prepare the Stockholders' equity section of Smith Corporation's December 31, 2017 balance sheet.

Impact on Equity tab - For each transaction, indicate the total change in Stockholders' Equity, if any. Verify that total equity, as calculated, agrees with the amount reported on the Stockholders' Equity tab.