ACC 206 Week 1 P13 25A
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Description
ACC 206 Week 1 P13-25A
ACC 206 Week 1 P13-25A
P13-25A Journalizing dividend and treasury stock transactions, and preparing stockholders equity [1030 min]
The balance sheet of Lennox Health Foods, at December 31, 2011, reported 120,000 shares of no-par common stock authorized, with 25,000 shares issued and a Common stock balance of $190,000. Retained earnings had a balance of $115,000. During 2012, the company completed the following selected transactions:
Mar 15 Purchased 9,000 shares of treasury stock at $8 per share.
Apr 30 Distributed a 10% stock dividend on the outstanding shares of common stock.
The market value of common stock was $9 per share.
Dec 31 Earned net income of $110,000 during the year. Closed net income to Retained earnings.
Requirements
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Record the transactions in the general journal. Explanations are not required.
- Prepare the stockholders equity section of Lennox Health Foods balance sheet at December 31, 2012.