Answer:
Explanation:
1. Jan 1
Paid Up Capital (6,000*15) Dr.$ 90,000
Paid in Capital in excess of par value Dr.$30,000
Treasury stock (6,000*20) Cr.$ 120,000
Jan 5. Dividend (55,000-6,0000=49,000*2) Dr.$98,000
Dividend Payable Cr.$98,000
Feb 28. Dividend Payable Dr.$98,000
Bank Cr.$98,000
July 6 Bank (2,250*24) Dr.$54,000
Paid up capital (2,250*15) Cr.$33,750
Paid in capital in excess of par (2250*9) Cr.$20,250
Aug 22 Cash (3,750*17) Dr.$63,750
Paid up capital (3,750*15) Cr.$ 56,250
Paid in capital in excess of par Cr.$7,500
Sept 5. Dividend (49,000+2,250+3,750)*2 Dr.$110,000
Divided Payable Cr.$110,000
Oct 28. Dividend Payable Dr.$110,000
Cash Cr.$110,000
Dec 31 Income Summary Account Dr.$428,000
Retained Earnings cr.$428,000
2.Statement of retained Earnings
Retained Earnings at beginning $460,000
Add; Net income for the year $428,000
Less: Dividends paid(98,000+110,000) ($208,000)
Retained earnings as at December 31,2017 $680,000
3. Stockholders' Equity Section of Balance Sheet
Retained earnings $680,000
Paid Up Capital Outstanding
(825,000-90,000+33,750+56,250) $915,000
Paid in capital in excess of par
(70,000-30,000+20250+7500) $67,750
Total stockholders' equity $1,662,750
