Answer Happy

GL1101 (Algo) - Based on Problem 11-2A LO C3, P2, P3 Lafayette Company reports the following components of stockholders' equity on January 1. Common stock-$10 par value, 130,000 shares authorized, 50,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 500,000 75,000 410,000 $ 985,000 During the year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $23 cash per share. January 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record. February 28 Paid the dividend declared on January 5. July 6 Sold 2,500 of its treasury shares at $27 cash per share. August 22 Sold 2,500 of its treasury shares at $19 cash per share. September 5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. October 28 Paid the dividend declared on September 5. December 31 Closed the $270,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
No 1 2 3 4 5 6 7 8 Date January 02 January 05 February 28 July 06 August 22 September 05 October 28 December 31 Treasury stock, Common Cash Retained earnings Common dividend payable Common dividend payable Cash Cash Treasury stock, Common Paid-in capital, Treasury stock Account Title Cash Paid-in capital, Treasury stock Treasury stock, Common Retained earnings Common dividend payable Common dividend payable Cash Income summary Retained earnings 33 > >>> >> 33 Debit 115,000 90,000 90,000 67,500 47,500 10,000 100,000 100,000 270,000 Credit 115,000 90,000 90,000 57,500 10,000 57,500 100,000 100,000 270,000
Statement of Stockholders Impact on RE Equity Equity Prepare the Statement of Retained Earnings for Lafayette Corporation for the year ended December 31. Requirement General Journal General Ledger LAFAYETTE CORPORATION Statement of Retained Earnings For Year Ended December 31 $ Beginning retained earnings Add: Net income Less: Cash dividends declared Less: Treasury stock reissuances X S Trial Balance 410,000 417,500 827,500 (190,000) 637,500
General Ledger Statement of Stockholders Impact on RE Equity Equity Prepare the stockholders' equity section of Lafayette Corporation's balance sheet as of December 31. Requirement Answer is complete but not entirely correct. General Journal Trial Balance LAFAYETTE CORPORATION Stockholders' Equity Section of the Balance Sheet December 31 Common stock - $10 par value Paid-in capital in excess of par value, common stock Total contributed capital Retained earnings Total stockholders' equity $ 500,000 75,000 575,000 270,000 $ 845,000 Dates: January 01 to: January 01
Requirement General Journal General Ledger Total Stockholders' Equity - January 1 January 2) Purchased 5,000 shares of its own stock at $23 cash per share. January 5) Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. For each transaction, indicate the impact on total stockholders' equity. Enter decreases to equity as negative values. Verify that total Stockholders' equity as of December 31, as calculated, agrees with the amount reported on the balance sheet. February 28) Paid the dividend declared on January 5. July 6) Sold 2,500 of its treasury shares at $27 cash per share. August 22) Sold 2,500 of its treasury shares at $19 cash per share. September 5) Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of record. Trial Balance October 28) Paid the dividend declared on September 5. Statement of Stockholders RE Equity Impact on equity Stockholders' equity decreased Stockholders' equity decreased No change in total equity Stockholders' equity increased Stockholders' equity increased Stockholders' equity decreased No change in total equity December 31) Closed the $270,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Total Stockholders' Equity - as calculated on December 31 Total Stockholder's Equity as reported on Stockholder's Equity tab Unreconciled difference: Stockholders' equity increased Dates: January 01 S 985,000 (115,000) (90,000) 51,300 62,000 (100,000) Impact on Equity 417,500 S 1,210,800 S 845,000 S 365,800 to: January 01