Problem - Fill in the Excel spreadsheet provided via the link below to provide your answers to parts 1 and 2.
Context Corporation reports the following components of shareholders' equity on December 31, 20X4. Then paste the Excel data into a Word document on which you can also write the answer to part 3.
Context Corporation reports the following components of shareholders' equity on December 31, 20X3:
Common stock - $10 par value; 50,000 shares authorized
20,000 shares issued and outstanding....................... $200,000
Paid-in capital in excess of par value, common stock....... $30,000
Retained earnings...........................................$135,000
In the year 20X4, the following transactions affected its shareholders' equity accounts:
January 1: Purchased 2,000 shares of its own stock at $20.00 cash per share.
January 5: Directors declared a $2.00 per share dividend payable on February 28 to the February 5 shareholders of record.
February 28: Paid dividend declared on January 5.
July 6: Sold 750 off its treasury shares at $17.00 cash per share. This sale is part of the January 1 purchase at $20.00 per share).
September 5: Directors declared a $2.00 per share cash dividend payable on October 28 to the September 25 shareholders of record.
October 28: Paid the dividend declared on September 5.
December 31: Closed the $194,000 credit balance from net income of December 31, 20X4, in the income summary account to retained earnings.
Required:
1. General journal entries to record the selected transactions.
2. Stockholders' equity section as of the close of business on December 31, 20X4.
3. Rationale for buying. or not buying this stock based on the financial information presented.
Attachment:- Assignment.rar