Question 6: Korhal Corporation reports the following components of stockholders' equity at December 31, 2018. $400,000...

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Question 6: Korhal Corporation reports the following components of stockholders' equity at December 31, 2018. $400,000 Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding......... Paid-in capital in excess of par value, common stock. 60,000 Retained earnings.... 270,000 Total stockholders' equity. $730,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,800 shares of its own stock at $20 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 1,400 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,400 of its treasury shares at $17 cash per share. Sep. 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 $388,000 credit balance (from net income) in the income summary account to Retained Earnings. a. Prepare journal entries to record each of these transactions. [4 Marks] b. c. Prepare a statement of retained earnings for the year ended December 31, 2019. [1 mark] Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. [2 Mark] Question 6: Korhal Corporation reports the following components of stockholders' equity at December 31, 2018. $400,000 Common stock-$10 par value, 100,000 shares authorized, 40,000 shares issued and outstanding......... Paid-in capital in excess of par value, common stock. 60,000 Retained earnings.... 270,000 Total stockholders' equity. $730,000 During 2019, the following transactions affected its stockholders' equity accounts. Jan. 2 Purchased 3,800 shares of its own stock at $20 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 1,400 of its treasury shares at $24 cash per share. Aug. 22 Sold 2,400 of its treasury shares at $17 cash per share. Sep. 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 $388,000 credit balance (from net income) in the income summary account to Retained Earnings. a. Prepare journal entries to record each of these transactions. [4 Marks] b. c. Prepare a statement of retained earnings for the year ended December 31, 2019. [1 mark] Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2019. [2 Mark]

Answer rating: 100% (QA)

Date Jan02 Jan05 Feb28 01Jul 21Oct 01Sep Oct28 Dec31 ams 2 ans 3 Accounts Title Treasury Stock Cash ... View the full answer