Kroll Corporation reports the following components of stockholders’ equity-Exercise 13-18 Cash dividends, treasury stock

Kroll Corporation reports the following components of stockholders’ equity-Exercise 13-18 Cash dividends, treasury stock

Question
	Exercise 13-18 Cash dividends, treasury stock, and statement of retained earnings L.O. C3, P2, P3
Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011.


Common stock—$27 par value, 53,000 shares authorized,
43,000 shares issued and outstanding	$	 1,161,000
Paid-in capital in excess of par value, common stock	 57,000
Retained earnings	 275,000

Total stockholders’ equity	$	 1,493,000


In year 2012, the following transactions affected its stockholders’ equity accounts.

Jan.	2
Purchased 3,500 shares of its own stock at $27 cash per share.
Jan.	7
Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.
Feb.	28 Paid the dividend declared on January 7.
July	9 Sold 400 of its treasury shares at $32 cash per share.
Aug.	27 Sold 3,100 of its treasury shares at $25 cash per share.
Sept.	9
Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.
Oct.	22 Paid the dividend declared on September 9.
Dec.	31
Closed the $14,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:
1.	
Prepare journal entries to record each of these transactions for 2012. (Omit the "$" sign in your response.)

Date	General Journal	Debit	Credit
Jan.	2


Jan.	7


Feb.	28


July	9



Aug.	27




Sept.	9


Oct.	22


Dec.	31
2.	
Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

KROLL CORPORATION
Statement of Retained Earnings
For Year Ended December 31, 2012
$






$
3.	
Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2012. (Omit the "$" sign in your response.)

KROLL CORPORATION
Stockholders’ Equity Section of the Balance Sheet
December 31, 2012
$



Total stockholders’ equity	$