15-6

Washington Company has the following stockholders equity accounts at December 31, 2014.

Common Stock ($100 par value, authorized8,300shares)	$515,000
Retained Earnings	304,300

(a) Prepare entries in journal form to record the following transactions, which took place during 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(1)	280shares of outstanding stock were purchased at $98per share. (These are to be accounted for using the cost method.)
(2)	A $21per share cash dividend was declared.
(3)	The dividend declared in (2) above was paid.
(4)	The treasury shares purchased in (1) above were resold at $103per share.
(5)	600shares of outstanding stock were purchased at $105per share.
(6)	350of the shares purchased in (5) above were resold at $96per share.

(b) Prepare the stockholders equity section of Washington Companys balance sheet after giving effect to these transactions, assuming that the net income for 2015 was $94,740. State law requires restriction of retained earnings for the amount of treasury stock.