28 Nov Journalizing dividend and treasury stock transactions, and preparing stockholders? equity? The balance sheet of Lennox Health
P13-25A – Lennox Health Foods
ACC 206 – Principles of Accounting II
P13-25A Journalizing dividend and treasury stock transactions, and preparing stockholders’ equity
The balance sheet of Lennox Health Foods, at December 31, 2011, reported 120,000 shares of no-par ordinary shares approved, with 25,000 shares issued and a Common stock balance of $190,000. Saved income had a balance of $115,000. In 2012, the company finished the following selected transactions:
Mar 15 Bought 9,000 shares of treasury stock at $8 for each share.
Apr 30 Distributed a 10% stock dividend on the outstanding shares of ordinary shares.
The market value of ordinary shares was $9 for each share.
Dec 31 Earned net income of $110,000 during the year. Closed net income to Saved income.
Requirements
- Document the dealings in the general journal. Explanations aren’t needed.
- Prepare the stockholders’ equity section of Lennox Health Foods’ balance sheet on December 31, 2012.
