Directions: After reading the companys background information in each scenario, complete the corresponding tasks.

Scenario 1:

Trust First Company is authorized to issue 200,000 shares of $15 par common stock. Record the entry for the following issuances of the stock:

Issue 50,000 shares at $15.

Issue 100,000 shares at $30.

Scenario 2:

Bright Company reacquires 10,000 shares of $10 par common stock at $20.

Record the entry for the reacquiring of the shares.

Record the entry required if the company reissues 5,000 shares at $25.

Record the entry required if the company reissues 2,500 shares at $18, assuming transaction B has occurred.

Record the entry required if the company reissues 2,500 shares at $18, if transactions B and C have not occurred.

Scenario 3:

Seal Company declares a property dividend. They are going to issue equity investments that cost $250,000. The fair market value of the investments at the date of declaration is $350,000.

Prepare the entries for the date of declaration, date of record, and date of payment.

Scenario 4:

Bonus Company has 200,000 shares of $15 par common stock that is selling on the market at $30. The company declares a 15% stock dividend.

Prepare the entry for the date of declaration.

Prepare the entry for the date of distribution.

Scenario 5:

Assume the same facts as in Scenario 4 above, but the company declares a 40% stock dividend.

Prepare the entry for the date of declaration.

Prepare the entry for the date of distribution.