1. Elroy Corporation repurchased 3,800 shares of its own stock for $45 per share. The stock has a par of $20 per share. A month later, Elroy resold 950 shares of the treasury stock for $53 per share. Required a. Record the two events in general journal format. b. What is the balance of the treasury stock account after these transactions?

2. On May 1, Year 1, Love Corporation declared a $88,100 cash dividend to be paid on May 31 to shareholders of record on May 15. Required

A. Record the events occurring on May 1, May 15, and May 31 in a horizontal statements model.

LOVE CORPORATION

Horizontal Statements Model

Date

Balance Sheet

Income Statement

Statement of Cash Flows

Assets

=

Liabilities

+

Common Stock

+

Retained Earnings

Revenue

Expenses

=

Net Income

May 01

=

+

+

=

May 15

=

+

+

=

May 31

=

+

+

=

B. Prepare journal entries for all events associated with the dividend.