Hi, my questions pertains to Capella University BUS-FP4060_Assessment4-2. There is an assignment uploaded to this site with the data, but I'll reiterate it here.

Stockholder equity in Transworld Inc on Dec 31, 2010:

Common stock, 60,000 authorized shares, par value $15, 25,000 shares issued and outstanding = $375,000

Paid-in capital in excess of par value, common stock = $90,000

Retained earnings = $430,000

Total equity = $895,000

Stockholder equity accounts were affected by the following transactions in 2011:

Jan 1 Transworld purchased 2,000 treasury shares at $24/share.

Jan 7 Declared a $3/share dividend, payable on Feb 15 to the Feb 28 stock holders of record.

Feb 15 Paid the dividend (Jan 7 declaration).

May 7 Sold 800 of treasury shares for cash at $27/share.

Aug 15 Sold 1200 of treasury shares for cash at $21/share.

Sep 20 Declared a $3/share dividend, payable on Oct 15 to the Sep 30 stockholders of record.

Oct 15 Paid the dividend (Sep 20 declaration).

Dec 31 Closed the credit balance of $188,000 (from net income) in the Retained Earnings Income Summary account.

1. Use the information provided to prepare the following
2. Journal entries for 2011 transactions.

I got the Jan 1 transaction, that one is easy. For the Jan 7th transaction I figured retained earnings are debit $75,000 and dividend payable is credit $75,000. I assumed this because there are 25,000 outstanding shares at $3 per share dividend is $75,000.

I'm told this is incorrect. Another student uploaded their assignment and got $69,000 being debit/credit from those accounts. She had 23,000 outstanding shares at $3/share. How did she get that number? The information states that they purchased 2000 treasury shares on Jan 1, not common stock. Also if they had purchased these 2,000 shares wouldn't the total be 27,000 and not 23,000? Please help. Thanks.