Dunst Company had the following shareholders' equity account balances on December 31,2011:
During 2012,the following transactions occurred:
i.May 1: Dunst resold 1,600 of the treasury shares at $52 per share.
ii.Dec.30: The board of directors declared cash dividends of $2 per share.
iii.Dec.31: Net income for the year ended December 31,2012 was $150,000.
Dunst uses the single transaction method for treasury shares.
Requirements:
a.Record the journal entries for the transactions in 2012 and make all the necessary year-end entries relating to shareholders' equity accounts.
b.Prepare the presentation of the shareholders' equity section of Dunst's balance sheet as at December 31,2012.

Question

Dunst Company had the following shareholders' equity account balances on December 31,2011:
  During 2012,the following transactions occurred:
i.May 1: Dunst resold 1,600 of the treasury shares at $52 per share.
ii.Dec.30: The board of directors declared cash dividends of $2 per share.
iii.Dec.31: Net income for the year ended December 31,2012 was $150,000.
Dunst uses the single transaction method for treasury shares.
Requirements:
a.Record the journal entries for the transactions in 2012 and make all the necessary year-end entries relating to shareholders' equity accounts.
b.Prepare the presentation of the shareholders' equity section of Dunst's balance sheet as at December 31,2012.

Quizplus · Accepted Answer

The Answer of Dunst Company had the following shareholders' equity account balances on December 31,2011:
  During 2012,the following transactions occurred:
i.May 1: Dunst resold 1,600 of the treasury shares at $52 per share.
ii.Dec.30: The board of directors declared cash dividends of $2 per share.
iii.Dec.31: Net income for the year ended December 31,2012 was $150,000.
Dunst uses the single transaction method for treasury shares.
Requirements:
a.Record the journal entries for the transactions in 2012 and make all the necessary year-end entries relating to shareholders' equity accounts.
b.Prepare the presentation of the shareholders' equity section of Dunst's balance sheet as at December 31,2012.

Dunst Company Had the Following Shareholders' Equity Account Balances on December