apps detail
Looking for more tutorials?

Tutorial   16925

Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011. Common stock—$27 par value, 44,000 shar...

Question:

Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011.       

  Common stock—$27 par value, 44,000 shares authorized,

    34,000 shares issued and outstanding                                                        $918,000 

  Paid-in capital in excess of par value, common stock                                          56,000 

  Retained earnings                                                                                         273,000 

   Total stockholders’ equity                                                                          $1,247,000  

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

  Jan.      2              Purchased 3,100 shares of its own stock at $27 cash per share.

  Jan.      7              Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.

  Feb.     28           paid the dividend declared on January 7.

  July      9              Sold 400 of its treasury shares at $32 cash per share.

  Aug.     27           Sold 2,700 of its treasury shares at $25 cash per share.

  Sept.   9              Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.

  Oct.      22           paid the dividend declared on September 9.

  Dec.     31           closed the $6,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:

1.            Prepare journal entries to record each of these transactions 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, 2012.

 

ATTACHMENTS
question_6.xlsx