Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings, and preparing stockholders’ equity The balance sheet of Goldstein Management Consulting, Inc. at...

Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings, and preparing stockholders’ equity

The balance sheet of Goldstein Management Consulting, Inc. at December 31, 2017, reported the following stockholders’ equity:

During 2018, Goldstcin completed thc Following selected transactions:

Requirements

1. Record the transactions in the general journal.


2. Prepare a retained earnings statement for the year ended December 31, 2018. Assume Goldstein’s net income for the year was $90,000.


3. Prepare the stockholders’ equity section of the balance sheet at December 31, 2018.

Extracted text: Stockholders' Equity Paid-In Capital: Common Stock-$10 Par Value; 350,000 shares authorized, 32,000 shares issued and outstanding $ 320,000 Paid-In Capital in Excess of Par-Common Total Paid-In Capital 330,000 650,000 Retained Earnings Total Stockholders' Equity 160,000 $ 810,000


Extracted text: Feb. 6 Declared a 15% stock dividend on common stock. The market value of Goldstein's stock was $25 per share. 15 Distributed the stock dividend. Jul. 29 Purchased 2,300 shares of treasury stock at $25 per share. Nov. 27 Declared a $0.10 per share cash dividend on the common stock outstanding.