accounting 2 homework

sprite corp. reports the following components of stockholders equity on dec.31,2013:

                  common stock-$10par value, 100,000 shares authorizied

                        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 stockholders equity………………………………………………………………………$730,000

in year 2014, the following transactions affected its stockholders equity accounts.

  jan.1- purchased 4,000 shares of its own stock at $20 cash per share.

  jan.5- directors declared a $2 per share cash dividents payable on feb.28 to feb.5 stockholders of record.

 feb.28- paid a divident declared on jan.5

july 6-  sold 1,500 of its tresury shares at $24 cash per share

aug.22- sold 2,500 of its tresury shares at$17 cash per share

sept.5- directors declared a $2 per share cash divident 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.

REQUIRED:

1. Prepare journal entries to record each of these transactions for 2014.

2. Prepare a statement of retained earnings for the year ended December 31,2014

3. Prepare the stockholders equity section of the companys balance sheet as of December 31,2014