Answer:
cash 4,900,000 debit
common stock 700,000 credit
additional paid-in 4,200,000 credit
in excess of Par-value
treasury stock: 360,000 debit
cash 360,000 credit
dividends 340,000 debit
dividends payable 340,000 credit
Explanation:
cash proceeds: 700,000 x 7 = 4,900,000
common stock: 700,000 x 1 = 700,000
additional paid-in: (difference) 4,200,00
treasury stock: 20,000 x 18 = 360,000
outstanding shares: 700,000 - 20,000 = 680,000
cash dividends: 680,000 x 0.50 = 340,000
