Ch. 8

On May 4, 2016, Docker, Inc., purchased 650 shares of its own common stock in the market at a price of $18.00 per share. On September 19, 2016, 350 of these shares were sold in the open market at a price of $20.80 per share. There were 34,000 shares of Docker common stock outstanding prior to the May 4 purchase of treasury stock. A $0.45 per share cash dividend on the common stock was declared and paid on June 15, 2016.

Required:

a. Use the horizontal model on Docker's financial statements for the purchase of the treasury stock on May 4, 2016. (Use amounts with + for increases and amounts with - for decreases.)

Balance Sheet Income Statement

Assets = Liabilities + Stockholder's Equity Net Income = Revenues-Expenses

b. Use the horizontal model on Docker's financial statements for the declaration and payment of the cash dividend on June 15, 2016. (Use amounts with + for increases and amounts with - for decreases.)

Balance Sheet Income Statement

Assets = Liabilities + Stockholder's Equity Net Income = Revenues-Expenses

c. Use the horizontal model on Docker's financial statements for the declaration and payment of the sale of the treasury stock on September 19, 2016. (Use amounts with + for increases and amounts with - for decreases.)

Balance Sheet Income Statement

Assets = Liabilities + Stockholder's Equity Net Income = Revenues-Expenses