Username:
Password:
LOGIN
Ask a Question Browse Questions Frequently Asked Questions
Question
Offered Price
$12.99

Problem 13-2A_Context Corporation_Treasury stock

Question # 00008206
Subject: Business / Accounting
Due on: 12/31/2015
Posted On: 02/10/2014 05:07 AM
Posted By:
ACCOUNTS_GURU
Spent
$0.00
Earned
$2,738.44
Feedback Score:
Report this Question as Inappropriate
Question Context Corporation reports the following components of stockholders’ equity on December 31, 2011:

Common stock—$10 par value, 50,000 shares authorized,

20,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . $200,000

Contributed capital in excess of par value, common stock . . . . . . . . 30,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $365,000



In year 2012, the following transactions affected its stockholders’ equity accounts:

Jan. 1 Purchased 2,000 shares of its own stock at $20 cash per share.

Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.

Feb. 28 Paid the dividend declared on January 5.

July 6 Sold 750 of its treasury shares at $24 cash per share.

Aug. 22 Sold 1,250 of its treasury shares at $17 cash per share.

Sept. 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 $194,000 credit balance (from net income) in the Income Summary account to
Retained Earnings.



Required

1. Prepare journal entries to record these transactions for 2012.

2. Prepare a statement of retained earnings for the year ended December 31, 2012.

3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 20.
Tutorials for this Question
Available for
$12.99

Problem 13-2A_Context Corporation_Treasury stock

Tutorial # 00007826
Number of words in this Tutorial: 4
Posted On: 02/10/2014 05:08 AM
Feedback Score: Not rated yet!
This tutorial has been purchased 0 times.
Posted By:
ACCOUNTS_GURU
Spent
$0.00
Earned
$2,738.44
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview ……
Attachments
Problem_13-2A_Context_Corporation_Treasury_stock.xlsx (10.93 KB)
Preview: 2012Add: xxx IncomeLess: xxxxxxxxx Sale of xxxxxxx StockBalance - xxx 1, xxxxxxxxxxx xxxxxx - xxxxxxxx 31, 2012BALANCE xxxxx (Partial)As on xxxxxxxx 31, xxxxxxxxxxxxxxxxx xxxxxxxxxxxx stock—$10
Purchase this Tutorial @ $12.99 *
* - Additional Paypal / Transaction Handling Fee (3.4% of Tutorial price + $0.30) applicable