Common stock, $ 1 par, 200,000 shares outstanding $200,000

Additional paid-in $750,000

During 2023, Company reacquired 100 shares of common stock for $500,000. The accountant recorded this transaction by debiting Investment in equity securities and crediting Cash (outstanding stock shares were not updated).

On December 31, 2023, the board of directors declared a $.50 per share cash dividend on all outstanding common stock shares.

Required Journal Entries

A. Company reacquired 100 shares of common stock for $500,000. The accountant recorded this transaction by debiting Investment in equity securities and crediting Cash.

B. On December 31, 2023, the board of directors declared a $.50 per share cash dividend on all outstanding common stock shares.

Note: The amount $100,000 for cash dividends is wrong answer.