Knapp Industries began business on January 1, 2018 by issuing all of its 1,550,000 authorized shares of its $1 par value common
stock for $30 per share. On June 30, Knapp declared a cash dividend of $1.25 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 310,000 of its own shares of stock for $35 per share. On December 22, Knapp resold 155,000 of these shares for $41 per share. Required:
a. Prepare all of the necessary journal entries to record the events described above.
b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $8,000,000
He is age 20 and single. His only income item is $12,100 interest from a trust fund. NO CONTRIBUTION SINCE HE HAS NO EARNED INCOME
He is age 40 and single. His only income item is a $34,900 share of ordinary income from a partnership. MAXIMUM CONTRIBUTION OF $6,000
He is age 60 and single. His only income item is $21,300 wages from his job. MAXIMUM CONTRIBUTION OF $7,000
He is age 46 and files a joint return with his wife. His sole proprietorship generates a $7,790 loss, and his wife’s salary is $46,700. MR. JANSON CANNOT CONTRIBUTE ANY MONEY TO THE IRA ACCOUNT, BUT HIS WIFE CAN CONTRIBUTE $6,000 ON HER ACCOUNT AND $6,000 ON MR. JANSON'S ACCOUNT.
Explanation:
In 2019, the limit for RA contributions increased by $500 to:
