Kroll Corporation reports the following components of stockholders’ equity on December 31, 2011.
In year 2012, the following transactions affected its stockholders’ equity accounts.
Purchased 3,400 shares of its own stock at $29 cash per share.
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 500 of its treasury shares at $34 cash per share.
Aug. 27 Sold 2,900 of its treasury shares at $27 cash per share.
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.
Closed the $12,000 credit balance (from net income) in the Income Summary account to Retained Earnings.
1. Prepare journal entries to record each of these transactions for 2012. (Omit the “$” sign in your response.)
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 “$” sign in your response.)
3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2012. (Omit the “$” sign in your response.)