BOS 224A and B-Accounting for Decision-Making Canvas Problem: Stock Issuance and Treasury Stock Transactions On January 1, 2023, the stockholders' equity accounts of Ware, Inc. were as follows: 8% Cumulative Preferred Stock, par $100; 1,200 shares authorized, issued, and outstanding Common Stock, par $5; 100,000 shares authorized, 40,000 shares issued, 30,000 shares outstanding Additional Paid-in Capital Retained Earnings Less: Treasury Stock (common) Total Stockholders' Equity 481 REQUIRED: Answers each of the following questions. $120,000 200,000 100,000 370,000 (45.000) $745,000 A. Assuming that the Common Stock and Additional Paid in Capital accounts relate entirely to the issuance of common stock, what was the average price per share (rounded to the nearest cent) at which the common stock was issued to stockholders? B. How many shares of stock are held in the company's treasury? What was the average price per share paid by Ware to reacquire those shares? C. Without prejudice to your answer in requirement B above, assume that Ware holds 10,000 shares in its treasury as of January 1, 1023. Prepare journal entries for each of the following transactions/events. 1. On January 15, 2023, the board of directors of Ware declares a cash dividend of $.25 per share, payable to all common stockholders. Payment is to be made on February 15, 2023 (see requirement 2 below). 2. On February 15, 2023, Ware pays the cash dividend that had been declared on January 15 (see requirement 1 above). 3. On June 30, 2023, Ware's board of directors declares and issues a 10% stock dividend on the common stock. At that date, the market price of Ware's common stock was $12 per share. 4. On September 15, 2023, Ware reacquires for cash 2,000 shares of its own outstanding shares of common stock for $13 per share. 5. On December 1, 2023, Ware reissues 500 shares of the treasury stock it had acquired on September 15 (see requirement 4 above). The firm reissues the shares for $14 each.

BOS 224A and B-Accounting for Decision-Making Canvas Problem: Stock Issuance and Treasury Stock Transactions On January 1, 2023, the stockholders' equity accounts of Ware, Inc. were as follows: REQUIRED: Answers each of the following questions. A. Assuming that the Common Stock and Additional Paid in Capital accounts relate entirely to the issuance of common stock, what was the average price per share (rounded to the nearest cent) at which the common stock was issued to stockholders? B. How many shares of stock are held in the company's treasury? What was the average price per share paid by Ware to reacquire those shares? C. Without prejudice to your answer in requirement B above, assume that Ware holds 10,000 shares in its treasury as of January 1,1023. Prepare journal entries for each of the following transactions/events. 1. On January 15, 2023, the board of directors of Ware declares a cash dividend of $.25 per share, payable to all common stockholders. Payment is to be made on February 15, 2023 (see requirement 2 below). 2. On February 15, 2023. Ware pays the cash dividend that had been declared on January 15 (see requirement 1 above). 3. On June 30,2023 , Ware's board of directors declares and issues a 10% stock dividend on the common stock. At that date, the market price of Ware's common stock was $12 per share. 4. On September 15, 2023, Ware reacquires for cash 2,000 shares of its own outstanding shares of common stock for $13 per share. 5. On December 1,2023, Ware reissues 500 shares of the treasury stock it had acquired on September 15 (see requirement 4 above). The firm reissues the shares for $14 each