| Share Holder equity |
| Utah Corporation reports the following components of stockholders’ equity on December 31 |
| Common stock—$20 par value, 100,000 shares authorized, |
| 40,000 shares issued and outstanding | 800,000 |
| Paid-in capital in excess of par value, common stock | 60,000 |
| Retained earnings | 430,000 |
| Total stockholders' equity | 1,290,000 |
| During thea year, the following transactions affected its stockholders’ equity accounts. |
| Jan. | 2 | Purchased 4,500 shares of its own stock at $15 cash per share. |
| Jan. | 5 | Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. |
| Feb. | 28 | Paid the dividend declared on January 5. |
| July | 6 | Sold 1,688 of its treasury shares at $19 cash per share. |
| Aug. | 22 | Sold 2,812 of its treasury shares at $12 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings. |
| Required: |
| 1. Prepare journal entries to record each of these transactions. |
| 2. Prepare a statement of retained earnings for the year ended December 31, 2019. |
| 3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2019. |
| No | Date | General Journal | Debit | Credit |
| 1 | 2-Jan |
| 2 | 5-Jan |
| 3 | 28-Feb |
| 4 | 6-Jul |
| 5 | 22-Aug |
| 6 | 5-Sep |
| 7 | 28-Oct |
| 8 | 31-Dec |
| Statement of Retained Earnings |
| 31-Dec |
| Beginning retained earnings |
| Ending retained earnings |
| Stockholders' Equity Section of the Balance Sheet |
| 31-Dec |
| Total contributed capital |
| Total stockholders' equity |
brandon282011
AC216Unit5Assignment5-ShareHolderEquity.xlsx
