Course: Intermediate Accounting

3) Presented below is information related to Aranya Co. for 2019.

1. On February 1, Aranya issued 90,000 shares (authorized to issue 1,000,000 shares of $1 par value) of common stock at $30 per share.

2. On April 1, Aranya replaced one of its used machines costed $200,000 with an accumulated depreciation of $110,000 with labor company and received additional $27,000 cash. Fair value of Aranyas machine at the time of exchange was $105,000. The cost, accumulated depreciation, and fair value of Labor Companys machine at the time of exchange were $125,000, $45,000, and $78,000 respectively. The exchange lacks commercial substance for both the parties.

3. On August 4, Aranya sold the 1,000 treasury shares that they had purchased on July 10 at $22 per share. The purchase price of the shares was $25 per share. There is no previous balance in the paid-in-capital from treasury stock account (journalize both purchase and resale).

4. On September 20, Aranya declared & issued a 10% stock dividend on the outstanding common stock when the stock is selling for $32 per share.

5. On December 31, Aranya declared a $0.70 per share liquidating dividend on the common stock outstanding. Instructions Journalize the following transactions from the perspective of Aranya Co. (20)

Question: Journalize the following transactions from the perspective of Aranya Co.