Horton Company began business on January 1, 2014 by issuing all of its 1,800,000 authorized shares of its $2 par value common stock for $35 per share. On June 30, they declared a cash dividend of $2.50 per share to stockholders of record on July 31. They paid the cash dividend on August 30. On November 1, Horton reacquired 360,000 of its own shares of stock for $40 per share. On December 22 they resold half of these shares for $46 per share.

a.

Prepare all of the necessary journal entries to record the events described above. 1. Record the issue of 1,800,000 authorized shares of $2 par value for $35 per share. 2.Record the declaration of the cash dividends of $2.50 per share. 3. Record the payment of the cash dividends of $2.50 per share. 4. Record the repurchase of 360,000 shares for $40 per share. 5. Record the reissue of 180,000 share for 46 per share. b. Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/2014 assuming that the Net Income for the year was $10,500,000.