[OneSG191]

Hey... so I'm new here, but I hope you guys can help me out... I really have no idea what I'm doing :)

I was given the following report and told to prepare the journal entries for it... any help would be appreciated as I'm really confused...

REPORT AS OF DEC. 31, 2008

Common stock--$10 par value, 100,000 shares
authorized 40,000 shares issued and outstanding... $400,000

paid-in capital in excess of par value, common stock... 60,000

Retained earnings... 270,000

Total stockholder's equity... 730,000

In 2009 the following transactions affected stockholders' equity accounts

Jan. 1 Purchased 40,000 shares of its (the company's) own stock at $20 cash per share.

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

Feb. 28 Paid the divided declared on Jan 5

July 6 Sold 1500 of its treasury shares at $24 cash per share

Aug. 22 Sold 2500 of its treasury shares at $17 cash per share

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

Oct 28 Paid the dividend declared on Sept. 5

Dec. 31 Closed the 388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.




As I said I'm supposed to prepare the journal and I think I screwed the whole thing up.

I'm looking forward to hearing your responses... I've heard this site does wonders...

[fjsmith81]

Hey...so I'm new here, but I hope you guys can help me out...I really have no idea what I'm doing :)

I was given the following report and told to prepare the journal entries for it...any help would be appreciated as I'm really confused...

REPORT AS OF DEC. 31, 2008

Common stock--$10 par value, 100,000 shares
authorized 40,000 shares issued and outstanding....................................... ...........$400,000

paid-in capital in excess of par value, common stock............................................. ....60,000

Retained earnings.......................................... .................................................. ....270,000

Total stockholder's equity............................................ .........................................730,000

In 2009 the following transactions affected stockholders' equity accounts

Jan. 1 Purchased 40,000 shares of its (the company's) own stock at $20 cash per share.

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

Feb. 28 Paid the divided declared on Jan 5

July 6 Sold 1500 of its treasury shares at $24 cash per share

Aug. 22 Sold 2500 of its treasury shares at $17 cash per share

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

Oct 28 Paid the dividend declared on Sept. 5

Dec. 31 Closed the 388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.




As I said I'm supposed to prepare the journal and I think I screwed the whole thing up.

I'm looking forward to hearing your responses...I've heard this site does wonders...

Ok I'm not going to do your homework for you because God knows I have a ton of my own. I am just going to give you the first journal entry to push you in the right direction.
Dec 31 Cash 400,000
Common Stock 400,000
(Entry to record the sale of 40,000 shares of
common stock at par value)


I'm a little rusty I think your next journal entry will be to account in the decrease or credit of assets and increase or debit of common stock, but make sure you separate it into two debits, to account for the common stock and the contributed capital in excess of par value.

I hope this helps you a little bit. Let me tell you a way that you can really tackle this problem on your own, though. Go through your book and read the examples that have the solutions. Do them without looking at the solutions, after you have worked the problem look at the solution and figure out where you went wrong. After that all you have to do is just plug the numbers of your problem into the problem in the book and you can do it on your own. I know that it sounds like something simple, but I tutor math and you will not believe the number of people that don't even bother looking at the examples in the book before coming to me with that defeated look on their face.

Good luck