Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

تمرين 40

Recording Stock Dividends and Treasury Stock Transactions
At the beginning of 2015, Thompson Service, Inc., showed the following amounts in the stockholders' equity section of its balance sheet:

The transactions relating to stockholders' equity during the year are as follows:

Instructions
a. Prepare in general journal form the entries to record the above transactions.
b. Prepare the stockholders' equity section of the balance sheet at December 31, 2015. Use the format illustrated in Exhibit 12-6. Include a supporting schedule showing your computation of retained earnings at that date.
c. Compute the maximum cash dividend per share that legally could be declared at December 31, 2015, without impairing the paid-in capital of Thompson Service. (Hint: The availability of retained earnings for dividends is restricted by the cost of treasury stock owned.)
EXHIBIT 12-6 Stockholders' Equity Section of Balance Sheet