Question
GreenLight.com, an online provider of eco-friendly light bulbs, began business on January 1. Its balance sheet on December 31 contained the following: Common stock ($1
GreenLight.com, an online provider of eco-friendly light bulbs, began business on January 1. Its balance sheet on December 31 contained the following: Common stock ($1 par) $20,000 Additional paid-in capital 42,000 Retained earnings 6,000 Treasury stock (1,500 shares) (9,000) $59,000 During the year GreenLight.com had the following (and only the following) transactions related to its shares of stock: (1) Issued shares on January 1 for $60,000 (2) Repurchased 2,000 shares on April 30 (3) Reissued some treasury shares on August 8 at a price of $10 per share A) Prepare the journal entry recorded by GreenLight.com, including the account names and amounts, for each transaction. (Note, even if you dont have the numbers, show the accounts that will be affected.) B) How many shares are issued as of December 31? C) Assume the company also declared and paid a dividend in December to all shares issued and outstanding. How many shares received a dividend?
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