Accounting HELP?! Cash dividends, treasury stock, and statement of retained earnings.?

I am completely lost on this. I have several problems on the same lines as this one but if someone could help me figure this one out maybe I can piece in the slots??? Thanks everyone <3 Context Corporation reports the following components of stockholders’ equity on December 31, 2005: Common stock—$10 par... show more I am completely lost on this. I have several problems on the same lines as this one but if someone could help me figure this one out maybe I can piece in the slots??? Thanks everyone <3

Context Corporation reports the following components of stockholders’ equity on December 31, 2005:

Common stock—$10 par value, 50,000 shares authorized,

20,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . $200,000

Contributed capital in excess of par value, common stock . . . . . . . . 30,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135,000

Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $365,000



In year 2006, the following transactions affected its stockholders’ equity accounts:

Jan. 1 Purchased 2,000 shares of its own stock at $20 cash per share.

Jan. 5 Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.

Feb. 28 Paid the dividend declared on January 5.

July 6 Sold 750 of its treasury shares at $24 cash per share.

Aug. 22 Sold 1,250 of its treasury shares at $17 cash per share.

Sept. 5 Directors declared a $2 per share cash dividend payable on October 28 to the September
25 stockholders of record.

Oct. 28 Paid the dividend declared on September 5.

Dec. 31 Closed the $194,000 credit balance (from net income) in the Income Summary account to
Retained Earnings.



Required

1. Prepare journal entries to record these transactions for 2006.

2. Prepare a statement of retained earnings for the year ended December 31, 2006.

3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2006.

Cash dividends, treasury stock, and statement of retained earnings
C2 C5 P3 P5 Check (2) Retained earnings, Dec. 31, 2006,
3 answers 3