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.
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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

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- Fall '09
- NANCYEVERETT
- Treasury Stock, ........., Generally Accepted Accounting Principles
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