a.

A corporation purchased for cash 6,000 shares of its own $8 par common stock at $30 a share. In the following year, it sold 1,500 of the treasury shares at $34 a share for cash.

(a) Journalize the entries to record the purchase (treasury stock is recorded at cost).

(b) Journalize the entries to record the sale of the treasury stock.

b.

On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $103.

Journalize the entries for April 1 and 7.

c.

A company has the following results for the year ending July 31:

Retained earnings, August 1	$877,000
Net income	455,000
Cash dividends declared	140,000
Stock dividends declared	50,000

In the answer box provided below create the Retained Earnings section of the balance sheet.