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Accounting - Dividends & Journal Entry (Rocklin Corporation)

** See attached PDF for details... **

Rocklin Corporation reports the following components of stockholders' equity on December 31, 2009.

Common stock-$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding
$1,125,000
Paid-in capital in excess of par value, common stock 60,000
Retained earnings

460,000
Total stockholders' equity

$1,645,000

In year 2010, the following transactions affected its stockholders' equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $25 cash per share.
Jan. 5 Directors declared a $3 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record.
Feb. 28 Paid the dividend declared on January 5.
July 6 Sold 1,688 of its treasury shares at $29 cash per share.
Aug. 22 Sold 2,812 of its treasury shares at $22 cash per share.
Sept. 5 Directors declared a $3 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 $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

1.
value:
7 points

Requirement 1:
Prepare journal entries to record each of these transactions for 2010. (Omit the "$" sign in your response.)

Date General Journal Debit Credit
Jan. 1

Jan. 5

Feb. 28

July 6

Aug. 22

Sept. 5

Oct. 28

Dec. 31

Check My WorkReferences
Worksheet Learning Objective: 11-C2 Learning Objective: 11-P2
Difficulty: Hard Learning Objective: 11-C4 Learning Objective: 11-P5

2.
value:
8 points

Requirement 2:
Prepare a statement of retained earnings for the year ended December 31, 2010. (Input all amounts as positive values. Omit the "$" sign in your response.)

ROCKLIN CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2010
$
:

:

$
Check My WorkReferences
Worksheet Learning Objective: 11-C2 Learning Objective: 11-P2
Difficulty: Hard Learning Objective: 11-C4 Learning Objective: 11-P5

3.
value:
8 points

Requirement 3:
Prepare the stockholders' equity section of the company's balance sheet as of December 31, 2010. (Omit the "$" sign in your response.)

ROCKLIN CORPORATION
Stockholders' Equity Section of the Balance Sheet
December 31, 2010

Common stock-$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding

Paid-in capital in excess of par value, common stock
Retained Earnings

Total stockholders' equity

Attachments

Solution Summary

The solution provider journal entries for treasury, dividend related transactions for Rocklin Corporation.

$2.19