January 2 Purchased 6,000 shares of its own stock at $20 cash per share. January 5 Directors declared a $6 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 3,000 of its treasury shares at $24 cash per share. August 22 Sold 3,000 of its treasury shares at $16 cash per share. September 5 Directors declared a $6 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 31 Closed the $368,000 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 current year ended December 31. 3. Prepare the stockholders’ equity section of the balance sheet as of December 31 of the current year.

Answer rating: 100% (QA)

1 Journal Entries January 2 textTreasury Stock text6000 shares at 20 textDebit 120000 textCash textC... View the full answer