The stockholders' equity section of ORB plc's balance sheet at December 31, 2018, was as follows: Common

Question:

The stockholders' equity section of ORB plc's balance sheet at December 31, 2018, was as follows:

Common Stock-$3 par (2,000,000 shares authorized, 1,000,000 shares issued and outstanding).... $3,000,000

Additional Paid-in Capital in Excess of Par - Common ............................................................................ 7,000,000

Retained Earnings ........................................................................................................................................ 24,700,000

Total Stockholders' Equity ..........................................................................................................................$34,700,000

Required

a. Prepare the journal entry required on January 9, 2019, if on that date ORB repurchased 50,000 shares of treasury stock for $750,000.

b. On March 23, 2019. ORB sold 10,000 of the treasury shares for $36 per share. Prepare the journal entry to record this transaction.

c. Prepare the journal entry required on June 30, 2019, assuming that the firm sold 30,000 of the treasury shares for $25 per share.

d. Prepare the stockholders' equity section of DR B's balance sheet on December 31, 2019, assuming that the company reported net income of $16,000,000 and declared and paid a cash dividend of $1.75 per share at year-end.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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