Assignment: Share Holder equity
Utah Corporation reports the following components of stockholders' equity on December 31.
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Common stock-$20 par value, 100,000 shares authorized, 40,000 shares issued and outstanding
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800,000
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Paid-in capital in excess of par value, common stock
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60,000
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Retained earnings
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430,000
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Total stockholders' equity
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1,290,000
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During thea year, the following transactions affected its stockholders' equity accounts.
Jan. 2 Purchased 4,500 shares of its own stock at $15 cash per share.
Jan. 5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,688 of its treasury shares at $19 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $12 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 $408,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
Instructions
This assessment addresses the following course objective(s):
• Prepare transactions according to the Generally Accepted Accounting Principles.
• Analyze balance sheet equity entries.
• Account for various transactions using industry-standard accounting software.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.