(Learning Objective 2, 3, 4: Accounting for stock issuance, dividends, and treasury stock) Boston Enterprises reported the following summarized balance sheet at December 31, 20X7:
|
Assets |
|
|
Current assets |
$18,200 |
|
Property and equipment, net |
34,700 |
|
Total assets |
$52,900 |
|
Liabilities and Equity |
|
|
Liabilities |
$ 6,200 |
|
Stockholders’ equity: |
|
|
$5 cumulative preferred stock, $10 par, 180 shares issued |
1,800 |
|
Common stock, $1 par, 2,400 shares issued |
2,400 |
|
Paid in capital in excess of par, common |
23,500 |
|
Retained earnings |
19,000 |
|
Total liabilities and equity |
$52,900 |
During 20X8, Boston completed these transactions that affected stockholders’ equity:
|
Feb. 22 |
Issued 1,000 shares of common stock for $16 per share. |
|
May 4 |
Declared the regular cash dividend on the preferred stock. |
|
24 |
Paid the cash dividend. |
|
July 9 |
Distributed a 10% stock dividend on the common stock. Market price of the common stock was $18 per share. |
|
Nov. 19 |
Reacquired 800 shares of common stock as treasury stock, paying $14 per share. |
|
Dec. 8 |
Sold 600 shares of the treasury stock for $15 per share. |
Required
1. Journalize Boston’s transactions. Explanations are not required.
2. Report Boston’s stockholders’ equity at December 31, 20X8. Net income for 20X8 was $62,000.