Problem 11-2A Cash dividends, treasury stock, and statement of retained earnings L.O. C2, C4, P2, P5
Rocklin Corporation reports the following components of stockholders’ equity on December 31, 2009.
Common stock—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
$1,125,000
Paid-in capital in excess of par value, common stock 60,000
Retained earnings
460,000
Total stockholders’ equity
$1,645,000
In year 2010, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share.
Jan. 5 Directors declared a $3 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 1,688 of its treasury shares at $29 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $22 cash per share.
Sept. 5 Directors declared a $3 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Problem 11-2A Requirement 1
Requirement 1:
Prepare journal entries to record each of these transactions for 2010. (Omit the "$" sign in your response.)
Date General Journal Debit Credit
Jan. 1
Jan. 5
Feb. 28
July 6
Aug. 22
Sept. 5
Oct. 28
Dec. 31
Problem 11-2A Requirement 2
Requirement 2:
Prepare a statement of retained earnings for the year ended December 31, 2010. (Input all amounts as positive values. Omit the "$" sign in your response.)
ROCKLIN CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2010
$
:
:
$
Problem 11-2A Requirement 3
Requirement 3:
Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2010. (Omit the "$" sign in your response.)
ROCKLIN CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2010
Common stock—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained Earnings
Total stockholders’ equity
Rocklin Corporation reports the following components of stockholders’ equity on December 31, 2009.
Common stock—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
$1,125,000
Paid-in capital in excess of par value, common stock 60,000
Retained earnings
460,000
Total stockholders’ equity
$1,645,000
In year 2010, the following transactions affected its stockholders’ equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share.
Jan. 5 Directors declared a $3 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 1,688 of its treasury shares at $29 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $22 cash per share.
Sept. 5 Directors declared a $3 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Problem 11-2A Requirement 1
Requirement 1:
Prepare journal entries to record each of these transactions for 2010. (Omit the "$" sign in your response.)
Date General Journal Debit Credit
Jan. 1
Jan. 5
Feb. 28
July 6
Aug. 22
Sept. 5
Oct. 28
Dec. 31
Problem 11-2A Requirement 2
Requirement 2:
Prepare a statement of retained earnings for the year ended December 31, 2010. (Input all amounts as positive values. Omit the "$" sign in your response.)
ROCKLIN CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2010
$
:
:
$
Problem 11-2A Requirement 3
Requirement 3:
Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2010. (Omit the "$" sign in your response.)
ROCKLIN CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2010
Common stock—$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained Earnings
Total stockholders’ equity