E10-25A. (Learning Objectives 2, 3, 4: Recording share issuance, treasury share, and dividend transactions) At December 31, 20X6, Southwest Corporation reported the shareholders’

equity accounts shown here (with dollar amounts in millions, except per share amounts).

Southwest’s 20X7 transactions included the following:

a. Net income, $446 million.

b. Issuance of 9 million shares of ordinary share for $13.50 per share.

c. Purchase of 3 million shares of treasury share for $16 million.

d. Declaration and payment of cash dividends of $32 million.
Requirement 1. Journalize Southwest’s transactions in

b, c, and

d. Explanations are not required.

Transcribed Image Text:

Ordinary share $2.00 par value per share, 2,100 million shares issued................ Capital in excess of par value..... $ 4,200 8,400 Retained earnings.......... 250 Treasury share, at cost...... (70) Total shareholders' equity.. $12,780