Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011. Common stock—$29 par value, 43,000 shares authorized, 33,000 shares issued and outstanding $ 957,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 262,000 Total stockholders’ equity $ 1,269,000 In year 2012, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 2,700 shares of its own stock at $29 cash per share. Jan. 7 Directors declared a $1 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 $34 cash per share. Aug. 27 Sold 2,300 of its treasury shares at $27 cash per share. Sept. 9 Directors declared a $1 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 $13,000 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.

Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011.

  

Common stock—$29 par value, 43,000 shares authorized,     33,000 shares issued and outstanding	$	957,000
Paid-in capital in excess of par value, common stock		50,000
Retained earnings		262,000
Total stockholders’ equity	$	1,269,000

 

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

 

Jan.	2	Purchased 2,700 shares of its own stock at $29 cash per share.
Jan.	7	Directors declared a $1 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 $34 cash per share.
Aug.	27	Sold 2,300 of its treasury shares at $27 cash per share.
Sept.	9	Directors declared a $1 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 $13,000 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.   Explanation: 1.   Jan. 2   Treasury Stock (2,700 × $29) = 78,300         Jan. 7   Common Dividend Payable ($1 dividend per share on 30,300) = 30,300         July 9   Cash (400 × $34) = 13,600     Treasury Stock, Common (400 × $29) = 11,600     Paid-In Capital, Treasury Stock (400 × $5) = 2,000         Aug. 27   Cash (2,300 × $27) = 62,100     Treasury Stock, Common (2,300 × $29) = 66,700         Sept. 9   Common Dividend Payable ($1 dividend per share on 33,000) = 33,000