Question
Houghton Company began business on January 1, 2015 by issuing all of its 1,850,000 authorized shares of its $1 par value common stock for $36
Houghton Company began business on January 1, 2015 by issuing all of its 1,850,000 authorized shares of its $1 par value common stock for $36 per share. On June 30, Houghton declared a cash dividend of $2.75 per share to stockholders of record on July 31. Houghton paid the cash dividend on August 30. On November 1, Houghton reacquired 370,000 of its own shares of stock for $41 per share. On December 22, Houghton resold 185,000 of these shares for $47 per share.
Required:
a. Prepare all of the necessary journal entries to record the events described above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. | Prepare the stockholders' equity section of the balance sheet as of December 31, 2015 assuming that the net income for the year was $11,000,000. |
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