1/1/17 Co issues 5000 shares of $5 par value CS for $10/shr. Journalize

2/1/17 Co purchases back 500 shrs of stock it issued in Jan. Co paid $12/shr. Journalize

3/1/17 Co sold 125 shrs from the February repurchase. These shares were sold at $13/shr. Journalize

3/15/17 Co sells 125 shrs from Feb repurchase. These shares sold at $10/shr. Journalize.

4/2/17 Co declares $0.50 cash div on outstanding shares. Journalize both declaration 4/2/17 and payment 4/15/17.

5/1/17 Co declares 10% stk div on outstanding shares. Recall that CS has a $5 Par Value. Current stock price is $15. Journalize just the declaration.

Journalize the distribution of stock dividend

What factors into the decision to pay or not pay cash dividends?

For the year ended December 31, 2008 SSS reports net income of $200,000. During the year the following occurred:

• Depreciation expense was $6000
• Accounts Receivable decreased $2000
• Inventory increased $3000
• SSS sold some used equipment for $7000, cost was $9000, Acc Dep was $3000
• Prepaid expenses decreased $2000
• Accounts Payable increased $4000
• SSS bought new equipment for $5,000
• SSS redeemed $5,000 of Bonds
• SSS issued $25,000 of common stock and paid dividends of $1000. $10,000 of the Stock Issued was exchanged for equipment.

1. Show calculations for Net Cash Provided (Used) from Operating Activities:
2. Show calculations for Net Cash Provided (Used) from Investing Activities
3. Show calculations for Net Cash Provided (Used) from Financing Activities
4. What was the total increase (or decrease) in cash for SSS over the year?

What are the characteristics of a Corporation?

What is Treasury Stock?