Question

Pina Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 7,600 shares) $505,600 Retained Earnings 291,700

Prepare entries in journal form to record the following transactions, which took place during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) 290 shares of outstanding stock were purchased at $98 per share. (These are to be accounted for using the cost method.) (2) A $22 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $102 per share. (5) 550 shares of outstanding stock were purchased at $105 per share. (6) 340 of the shares purchased in (5) above were resold at $97 per share. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6.

Prepare the stockholders’ equity section of Pina Company’s balance sheet after giving effect to these transactions, assuming that the net income for 2021 was $96,700. State law requires restriction of retained earnings for the amount of treasury stock. (Enter account name only and do not provide descriptive information.) PINA COMPANY Stockholders’ Equity December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021 $     Additional Paid-in Capital    Capital Stock    Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Capital Stock    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Property, Plant and Equipment    Total Stockholders' Equity     AddLess :     Additional Paid-in Capital    Capital Stock    Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Stockholders' Equity    Total Assets    Total Capital Stock    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Stockholders' Equity    Total Long-term Investments    Total Long-term Liabilities    Total Paid-in Capital    Total Paid-in Capital and Retained Earnings    Total Property, Plant and Equipment    Total Stockholders' Equity     $

Answer 1

To cash Answer: a Journal Entrings Event | particulary Debit credit 1. Treasury stock (490x$98) Alear $28,420 To cash $ 28,420 & Retained earnings Alc dr $ 104,852 To Dividendy payable $104,852 5056-240)*$22) 3 Dividendy payable Ale dr $104, 852 |$104852 4 I Cash (290x$102) Alcor $29,580 To TYogury Stok $ 28,420 TO Paid in capital from Treasury Stock (290X4) |$1160 5 Treasury Stock 550x$105) Ale dr $57,750 $57,750 To cash 6 Cash (340x97) Ale dr $32,980 paid in capital from Treasury stock dr $ 1160 Relained earnings $1560 TO Treasury stock (340x$105) $35,700 2) Stockholders equity - Retained earnings $281,988 Common stock $505,600 Total paid in capital and Retained i earnings $787,588 Lus: Treasury stock(57,750-35700) $22,050) Total slock holder's equity $765,538 -..Total stock holder is equity is $765,538 Working Noty - Retained earnings - Begining Retained earnings $291,700 Add: Net Income for the year $96,700 Total $388.400 cess: Dividendy paid during the year $104,852 Less : Loss on resale of treasury stock & 1560 1 Ending Retained earnings $281,988