Common stockâ€”$26 par value, 48,000 shares authorized,38,000 shares issued and outstanding $ 988,000Paid-in capital in excess of par value, common stock 60,000Retained earnings 260,000Total stockholdersâ€™ equity $ 1,308,000In year 2012, the following transactions affected its stockholdersâ€™ equity accounts.Jan. 2Purchased 3,200 shares of its own stock at $26 cash per share.Jan. 7Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.Feb. 28 Paid the dividend declared on January 7.July 9 Sold 500 of its treasury shares at $31 cash per share.Aug. 27 Sold 2,700 of its treasury shares at $24 cash per share.Sept. 9Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.Oct. 22 Paid the dividend declared on September 9.Dec. 31Closed the $12,000 credit balance (from net income) in the Income Summary account to Retained Earnings.Required:1. Prepare journal entries to record each of these transactions for 2012. (Omit the “$” sign in your response.)Jan. 2Jan. 7Feb. 28July 9Aug. 27Sept. 9Oct. 22Dec. 312. Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)KROLL CORPORATIONStatement of Retained EarningsFor Year Ended December 31, 2012$$3. Prepare the stockholdersâ€™ equity section of the companyâ€™s balance sheet as of December 31, 2012. (Omit the “$” sign in your response.)KROLL CORPORATIONStockholdersâ€™ Equity Section of the Balance SheetDecember 31, 2012$Total stockholdersâ€™ equity $
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