Week_1_Homework_Answers - Problem 13-2A(60 minutes Part 1...

Problem 13-2A (60 minutes)
Part 1
Jan. 1 Treasury Stock, Common. .................................. 112,500
Cash. ............................................................... 112,500
Purchased treasury stock (4,500 x $25).
Jan. 5 Retained Earnings. .............................................. 121,500
Common Dividend Payable. ......................... 121,500
Declared $3 dividend on 40,500 outstanding shares.
Feb. 28 Common Dividend Payable. ............................... 121,500
Cash. ............................................................... 121,500
Paid cash dividend.
July 6 Cash*. .................................................................... 48,952
Treasury Stock, Common**. ......................... 42,200
Paid-In Capital, Treasury Stock***. ............... 6,752
Reissued treasury stock.
*(1,688 x $29) **(1,688 x $25) ***(1,688 x $4)
Aug. 22 Cash*. .................................................................... 61,864
Paid-In Capital, Treasury Stock. ......................... 6,752
Retained Earnings. .............................................. 1,684
Treasury Stock, Common**. ......................... 70,300
Reissued treasury stock.
*(2,812 x $22) **(2,812 x $25)
Sept. 5 Retained Earnings. .............................................. 135,000
Common Dividend Payable. ......................... 135,000
Declared $3 dividend on 45,000 outstanding shares.
Oct. 28 Common Dividend Payable. ............................... 135,000
Cash. ............................................................... 135,000
Paid cash dividend.
Dec. 31 Income Summary. ................................................ 388,000
Retained Earnings. ........................................ 388,000
Closed Income Summary account.