Answer:
See the journal entries below.
Explanation:
Each of these transactions can be recorded in the journal as follows:
<u>Date Particulars Debit ($) Credit ($) </u>
Mar 1 Cash (50,000 * $47) 2,350,000
Common stock 50,000
Additional Paid-in Capital 2,300,000
<u><em> (To record Issue of 50,000 additional shares for $47 per share.) </em></u>
May 10 Treasury stock (4,500 * $50) 225,000
Cash 225,000
<u><em> (To record Purchase of 4,500 shares of treasury stock) </em></u>
Jun 1 Dividend (w.1) 181,875
Dividend payable 181,875
<u><em> (Record dividend declared.) </em></u>
Jul 1 Dividend payable 181,875
Cash 181,875
<u><em> (Record dividend paid.) </em></u>
Oct 21 Cash (2,250 * $55) 123,750
Treasury stock (2,250 * $50) 112,500
Additional Paid-in Capital 11,250
<em><u> (To record resale of shares of treasury stock.) </u></em>
Working:
w.1. Dividend = Dividend per share * (Shares of common stock outstanding as of the beginning of 2018 + Additional shares issued on March 1 - Shares of treasury stock purchased on May 10) = $1.25 * (100,000 + 50,000 - 4,500) = $181,875
