Knapp Industries began business on January 1, 2021 by issuing all of its 1,900,000 authorized shares...

Transcribed Image Text:

Knapp Industries began business on January 1, 2021 by issuing all of its 1,900,000 authorized shares of its $2 par value common stock for $37 per share. On June 30, Knapp declared a cash dividend of $1.00 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 380,000 of its own shares of stock for $42 per share. On December 22, Knapp resold 190,000 of these shares for $48 per share. Required: a. Prepare all of the necessary journal entries to record the events described above. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 assuming that the net income for the year was $11,500,000. Complete this question by entering your answers in the table below. Required A Required B Prepare all of the necessary journal entries to record the events described above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet > A B C D E. Record the issue of 1,900,000 authorized shares of $2 par value for $37 per share. 7 Knapp Industries began business on January 1, 2021 by issuing all of its 1,900,000 authorized shares of its $2 par value common stock for $37 per share. On June 30, Knapp declared a cash dividend of $1.00 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 380,000 of its own shares of stock for $42 per share. On December 22, Knapp resold 190,000 of these shares for $48 per share. Required: a. Prepare all of the necessary journal entries to record the events described above. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 assuming that the net income for the year was $11,500,000. Complete this question by entering your answers in the table below. Required A Required B Prepare all of the necessary journal entries to record the events described above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet > A B C D E. Record the issue of 1,900,000 authorized shares of $2 par value for $37 per share. 7