2.Roman Company had the following stockholders equity as of January 1, 2010.

Common Stock, $5 par value, 20,000 shares issued $100,000 Paid-in capital in excess of par $300,000 Retained earnings $320,000 Total stockholders equity $720,000

During 2010, the following transactions occurred:

Jan 31 Roman issued 5,000 shares of common stock at $10 per share. Feb 25 Roman repurchased 2,000 shares of treasury stock at a price of $19 per share. Mar 2 1,300 shares of treasury stock repurchased above were reissued at $20 per share. Apr 22 600 shares of treasury stock repurchased above were reissued at $18 per share. Apr 24 A 5% stock dividend was declared (the market price of the stock was $15) Apr 25 The 5% stock dividend was distributed ( market price of the stock was still $15)

Required:

(a) Prepare the journal entries to record the stock transactions in 2010, assuming Roman uses the cost method to account for treasury stock. (16 points)

(b) How many shares of common stock were outstanding as of April 30, 2010? (9 points)