Question

Kelsey Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock - $10 par value; 100,000 shares authorized; 40,000 shares issued and outstanding $400,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 270,000 Total stockholders' equity $730,000 During 2020, the following transactions affected its stockholders' equity accounts. Jan 2 - Purchased 4,000 shares of is own stock at $20 cash per share Jan 5 - Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb 5 stockholders of record Feb 28 - Paid the dividend declared on January 5 July 6 - Sold 1,500 of its treasury shares at $24 cash per share Aug 22 - Sold 2,500 of its treasury share at $17 cash per share Sep 5 - Directors declared a $2 per share dividend payable on Oct 28 to the Sep 25 stockholders of record Oct 28 - Paid the dividend declared on Sep 5 Dec 31 - Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings

Instructions: Answer each of the following questions by filling out the answer blanks below. There is one blank for each question. The answer for Question 1 goes in the first blank, for Question 2 in the second blank, and so on and so forth. Ensure that numerical responses are in comma format and are rounded to the nearest dollar. For example: 1; 50; 1,000; 150,000; 1,000,000; etc. Do not include symbols (i.e. $) or decimals in numerical answers. Other specific instructions might be present in the question, so make sure that you follow those as well if they are present. Failure to follow these instructions will result in answers being marked incorrect. While most answers will be numerical, some may be alphanumerical, meaning that you will include words and numbers.

1. As of Jan 5th's dividend declaration, how many shares of common stock are outstanding?

2. What amount of cash is paid on Feb 28th in settlement of the dividend declared on Jan 5th?

3. As of Sep 5th's dividend declaration, how many shares of common stock are outstanding?

4. What amount of cash is paid on Oct 28th in settlement of the dividend declared on Sep 5th?

5. Provide the journal entry for the sale of treasury stock on July 6th. (Your answer should be formatted as follows: debit "account name" "amount"; credit "account name" "amount" - an example is: debit accounts receivable 20,000; credit sales 20,000. Keep in mind that more than two accounts may be included in the entry. If that is the case, you will have multiple accounts credited/debited causing your answer to look more like this: debit "account name" "amount" ; credit "account name" "amount"; credit"account name" "amount")

Answer 1