Answer:
March 1 Issues 65,000 additional shares of $1 par value common stock for $62 per share.
Dr Cash 4,030,000
Cr Common stock 65,000
Cr Additional paid in capital 3,965,000
May 10 Purchases 6,000 shares of treasury stock for $65 per share.
Dr Treasury stock 390,000
Cr Cash 390,000
June 1 Declares a cash dividend of $2.00 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)
Dr Retained earnings 318,000
Cr Dividends payable 318,000
July 1 Pays the cash dividend declared on June 1.
Dr Dividends payable 318,000
Cr Cash 318,000
October 21 Resells 3,000 shares of treasury stock purchased on May 10 for $70 per share.
Dr Cash 210,000
Cr Treasury stock 195,000
Cr Additional paid in capital 15,000
