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  • General Journal documents dividends and treasury stock

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    Ehrom Saidov
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    The general journal entries record dividends declared and paid, treasury stock transactions, and the year-end closing of income and retained earnings to the retained earnings account. A partial balance sheet shows accounts comprising shareholders' equity. Events are identified as affecting current assets, stockholders' equity, net income, or cash flows. Transactions include dividends, treasury stock, and stock dividends, with stock splits noted as having no accounting transaction. Key dates are provided for dividend declarations and payments.

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    Part+5+Problem+Solving+Income+and+Retained+Earnings

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    The general journal entries record dividends declared and paid, treasury stock transactions, and the year-end closing of income and retained earnings to the retained earnings account. A partial balance sheet shows accounts comprising shareholders' equity. Events are identified as affecting current assets, stockholders' equity, net income, or cash flows. Transactions include dividends, treasury stock, and stock dividends, with stock splits noted as having no accounting transaction. Key dates are provided for dividend declarations and payments.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    8 views12 pages

    General Journal documents dividends and treasury stock

    Uploaded by

    Ehrom Saidov
    The general journal entries record dividends declared and paid, treasury stock transactions, and the year-end closing of income and retained earnings to the retained earnings account. A partial balance sheet shows accounts comprising shareholders' equity. Events are identified as affecting current assets, stockholders' equity, net income, or cash flows. Transactions include dividends, treasury stock, and stock dividends, with stock splits noted as having no accounting transaction. Key dates are provided for dividend declarations and payments.

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    © All Rights Reserved
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    of 12

    General Journal

    Date Accounts Dr

    Jan 3 Dividends $382,000


    Dividends Payable

    Feb 15 Dividends Payable $382,000


    Cash

    April 12 Treasury Stock $240,000


    Cash

    May 9 Cash $176,000


    Treasury Stock
    APIC:TS

    June 1 Retained Earnings $798,000


    Stock dividend to be dist
    APIC:SD

    June 30 Stock dividend to be dist $19,000


    Capital Stock

    Aug 4 Cash $22,200


    APIC:TS $1,800
    Treasury Stock

    Dec 31 Income Summary $1,928,000


    Retained Earnings

    Dec 31 Retained Earnings $382,000


    Dividends
    Cr

    382000
    $382,000

    $382,000

    240000
    $240,000

    176000
    $160,000 160000
    $16,000

    382000 -6000 4000 380000 0.05 19000


    $19,000
    $779,000

    $19,000

    22200

    $24,000 24000

    $1,928,000 Thompson Service


    Partial Balance Sheet (Shareholders' Equity)
    As of December 31, 2015

    $382,000 Capital Stock $401,000

    APIC:CS $4,202,000
    APIC:TS $14,200
    APIC:SD $779,000
    Total Paid in Capital $5,396,200
    Retained Earnings $3,452,600
    Treasury Stock -$56,000
    Total Shareholders' Equity $8,792,800
    Event Current assets Stockholders' equity Net income
    1 NE D NE
    2 D NE NE
    3 D D NE
    4 I I NE
    5 NE NE NE

    Dividends

    Dividends Payable

    TS

    Cash
    APIC:TS

    Retained Earnings
    Net cash flow
    NE
    D
    D
    I
    NE

    100000
    Dividends Payable 100000

    dends Payable 100000


    Cash 100000

    20000
    Cash 20000

    9000
    1000
    TS 10000

    ained Earnings
    Stock Dividends to be dist
    APIC:SD
    Total Stockholders' Equity Number of Outstanding Shares
    $840,000 40,000
    Jan 10 $0 2,000
    $840,000 42,000
    Mar 15 -$42,000 -2,000

    $798,000 40,000
    May 30 $63,000 2,000

    $861,000 42,000
    July 31 $0 42,000

    $861,000 84,000
    Dec 15 -$92,400 0

    $768,600 84,000
    Dec 31 $525,000 0

    $1,293,600 84,000

    2000 Retained Earnings

    TS

    Cash

    No transaction in case of stock split

    Dividends
    Income Summary
    Book Value per Share
    $21.00

    $20.00

    $19.95

    $20.50

    $10.25

    $9.15

    $15.40

    40000
    Capital Stock 2000
    APIC:SD 38000

    42000
    Cash 42000

    63000
    TS 42000
    APIC:TS 21000

    tion in case of stock split

    92400
    Dividends Payable 92400
    525000
    Retained Earnings 525000
    Stock Split
    Increases the number of outstanding common shares
    Has no impact on total shareholders' equity
    Market price of a common share decreases substantially
    Par value decreases in proportion to an increase of common shares
    No transaction (Memorundum is provided)
    Stock Dividends
    Increases the number of outstanding common shares
    Has no impact on total shareholders' equity
    Market price of a common share decreases slightly
    Par value is not affected
    A transaction is provided

    `
    declaration ex-dividend
    12 March 15 April
    record day payment date
    April 18 May 1

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