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    Accounting - Dividends & Journal Entry (Rocklin Corporation)

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    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

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    https://brainmass.com/business/journal-entries/accounting-dividends-journal-entry-rocklin-corporation-286321

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    Solution Summary

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

    $2.19