E10-52. (Learning Objectives 2, 3, 4: Reconstructing transactions from the financial statements) D-4 Networking Solutions began operations on January 1, 20X6, and immediately issued its shares, receiving cash. D-4’s Balance Sheet at December 31, 20X6, reported the following shareholders’ equity:

During 20X6, D-4

a. Issued shares for $3 per share.

b. Purchased 1,000 shares of treasury shares, paying $9 per share.

c. Resold some of the treasury shares.

d. Earned net income of $60,000 and declared and paid cash dividends. Revenues were $178,000 and expenses totaled $118,000.
Requirement 1. Journalize all of D-4’s shareholders’ equity transactions during the year. D-4’s entry to close net income to Retained Earnings was:

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Ordinary share, $1 par... Additional paid-in capital..... Retained earnings.......... Treasury share, 850 shares................. Total shareholders' equity $ 51,000 102,000 35,000 (7,650) $180,350