CAPITAL STOCK TRANSACTIONS
The balances in the stockholders' equity accounts of Waters Corporation on January 1, 2013 were:
	Preferred Stock (10%, $100 par, noncumulative, 7,500 shares authorized)			$ 207,500
	Common Stock ($10 par value, 350,000 shares authorized			$ 654,000
	Paid-in Capital in Excess of Par Value - Preferred Stock			$ 60,000
	Paid-in Capital in Excess of Par Value - Common Stock			$ 1,470,000
	Retained Earnings			$ 332,000
	Treasury Stock - Common (10,400 shares)			$ 124,800
					NUMBER OF COMMON SHARES
During 2013, the corporation had the following transactions related to equity:					ISSUED	-	TREASURY	=	OUTSTANDING
	Jan. 1	Beginning shares			________	-	__________	=	____________
	Feb. 8	Issued 40,000 shares of common stock for a total price of $560,000.			________		__________		__________
	Mar. 22	Purchased 17,000 additional shares of common treasury at $12 per share.			________		__________		__________
	May 3	Sold 14,000 shares of common treasury stock for $182,000.			________		__________		__________
	Jul. 28	Declared a 5% stock dividend when stock's market price is $11 per share.			________		__________		__________
	Aug. 15	Issued shares from stock dividend on July 28.			________		__________		__________
	Sept. 13	Declared a $.25 per share cash dividend on common stock and
			declared the regular dividend on preferred stock.		________		__________		__________
	Oct. 1	Paid cash dividends declared on Sept. 13.			________		__________		__________
	Nov. 25	Sold 12,400 shares of common treasury stock for $111,600.			________		__________		__________
	Nov. 30	Announced a 2:1 stock split and sent new shares of stock to existing stockholders.			________		__________		__________
	Dec. 15	Sold 10,000 shares of common stock for $8 per share.			________		__________		__________
	Dec. 31	Determined that the net income for the year was $196,000; closed Income
			Summary and dividend accounts.		________		__________		__________
Challenge:
1.	Using the journal on the next page, prepare journal entries for the above equity transactions AND the closing entries
2.	Post the journal entries into the ledger (t-accounts) provided and update balances.
3.	Complete the attached balance sheet as of December 31, 2013 (be sure to fill in ALL blanks).
4.	Answer the following questions:
	a.	How many shares of preferred stock were issued as of January 1, 2013? _______________
	b.	What is the dividend rate per share on the preferred stock?		____________________
	c.	What was the per share price of treasury stock held on January 1, 2013? ___________________
	d.	What is the par value per share of common stock on December 31, 2013? __________________
	e.	What is the earnings per share of this company on December 31, 2013?
		(The weighted average shares of common stock outstanding was 185,530) ________________

1.	Prepare required journal entries.
	WATERS CORPORATION
	General Journal
	Date	Description		Post Ref	Debit	Credit

2. Post journal entries
General Ledger
December 31, 2013
Cash 110			Accounts Payable 210			Preferred Stock 310			Treasury Stock 340
22,950				160,500			207,500		124,800
						PIC in Excess-P/S 311
			Wages Payable 220				60,000
				24,010
									PIC from
Accounts Receivable 112			Dividends Payable 230			Common Stock 320			Treasury Stock 350
103,425				0			654,000
Allowance for
Doubtful Accounts 114
	3,100
						PIC in Excess - C/S 322			Retained Earnings 400
							1,470,000			332,000
Inventory 116			Notes Payable 250
194,625				27,890
						C/S Dividends Distrib. 323			Cash Dividends 410
Equipment 120			Mortgage Payable 260
3,764,800				837,600
Accum. Depreciation 125						Income Summary 450			Stock Dividends 420
	238,000						196,000
Before Adj.
Debits =	4,210,600
Credits =	4,210,600
	0