Week_1_Homework_Answers - Problem 13-2A(60 minutes Part 1 Jan 1 Treasury Stock Common Cash Purchased treasury stock(4,500 x $25 112,500 112,500 121,500

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.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

Problem 13-2A ( Concluded) Part 2 ROCKLIN CORPORATION Statement of Retained Earnings For Year Ended December 31, 2010 Retained earnings, December 31, 2009 ........................ $ 460,000 Plus net income ............................................................... 388,000 848,000 Less:Cash dividends declared ...................................... (256,500) Treasury stock reissuances ................................. (1,684 ) Retained earnings, December 31, 2010 ........................ $ 589,816 Part 3