Question
Ezy Ryder incorporated on January 1, 2020 and was authorized to issue 20,000 shares of $1.00 par value common stock. The following transactions occurred during
Ezy Ryder incorporated on January 1, 2020 and was authorized to issue 20,000 shares of $1.00 par value common stock. The following transactions occurred during the year:
Jan 2, 2020: | Issued 13,000 shares of the common stock for $16 per share |
March 4, 2020: | Repurchased 3,200 shares for $20 each |
June 1, 2020: | Declared and paid a cash dividend of $1.50 per share |
a.) Prepare journal entries for the January 2, March 4 and June 1 transactions. If you are not sure how to prepare the journal entry, list the specific accounts affected by the transaction. (Hint: there are more than two lines below, because some transaction may affect more than two accounts.) b.) What was the total amount of dividends paid on June 1, 2020?
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