ACC206 - Principles of Accounting II � AU
This assignment focuses on advanced principles of accounting, covering topics such as income recognition, budgeting, and financial statement preparation.
Benjamin Fisher
Contributor
4.0
47
19 days ago
Preview (2 of 2)
Sign in to access the full document!
ACC206 - Principles of Accounting II – AU
P13-25A - Lennox Health Foods - ACC206 - Principles of Accounting II - AU
P13-25A Journalizing dividend and treasury stock transactions,
and preparing stockholders’ equity [10–30 min]
The balance sheet of Lennox Health Foods, at December 31, 2011, reported 120,000
shares of no-par common stock authorized, with 25,000 shares issued and a Common
stock balance of $190,000. Retained earnings had a balance of $115,000. During
2012, the company completed the following selected transactions:
Mar 15 Purchased 9,000 shares of treasury stock at $8 per share.
Apr 30 Distributed a 10% stock dividend on the outstanding shares of
common stock.
The market value of common stock was $9 per share.
Dec 31 Earned net income of $110,000 during the year. Closed net income
to Retained earnings.
Requirements
1. Record the transactions in the general journal. Explanations are not
required.
2. Prepare the stockholders’ equity section of Lennox Health Foods’ balance
sheet at December 31, 2012.
(10-30 min.) P 13-25A
Req. 1
Journal Entry
DATE ACCOUNTS AND EXPLANATIONS
POST.
REF. DEBIT CREDIT
P13-25A - Lennox Health Foods - ACC206 - Principles of Accounting II - AU
P13-25A Journalizing dividend and treasury stock transactions,
and preparing stockholders’ equity [10–30 min]
The balance sheet of Lennox Health Foods, at December 31, 2011, reported 120,000
shares of no-par common stock authorized, with 25,000 shares issued and a Common
stock balance of $190,000. Retained earnings had a balance of $115,000. During
2012, the company completed the following selected transactions:
Mar 15 Purchased 9,000 shares of treasury stock at $8 per share.
Apr 30 Distributed a 10% stock dividend on the outstanding shares of
common stock.
The market value of common stock was $9 per share.
Dec 31 Earned net income of $110,000 during the year. Closed net income
to Retained earnings.
Requirements
1. Record the transactions in the general journal. Explanations are not
required.
2. Prepare the stockholders’ equity section of Lennox Health Foods’ balance
sheet at December 31, 2012.
(10-30 min.) P 13-25A
Req. 1
Journal Entry
DATE ACCOUNTS AND EXPLANATIONS
POST.
REF. DEBIT CREDIT
Preview Mode
Sign in to access the full document!
100%
Study Now!
XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat
Document Details
University
Ashford University
Subject
Accounting