I.The December 31, 2016, the equity section of the balance sheet of Springer Company included the following:

Common Stock $1 Par 20 million shares outstanding$20,000,000

Paid in Capital in Excess of Par100,000,000

Retained Earnings115,000,000

Springer completed the following transactions in 2016 relating to treasury stock:

March 17: Reacquired 5 million shares at $10.

May 17: Reacquired 3 million shares at $9.

August 10: Sold 6 million shares at $12.

Required:a. Assuming Springer uses the cost method, prepare journal entries to record the foregoing transactions on a FIFO basis.

b.Prepare the stockholders equity section at August 31.

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II.The shareholders' equity section of Crystal Companys balance sheet includes the items shown below.

Preferred stock, 6%, $100 par, 1,000,000 shares outstanding

Common stock, $1 par, 50,000,000 shares outstanding

The board of directors of Crystal declared cash dividends of $3 million, $6 million, and $50 million in each of its first 3 years of operation: 2013, 2014, 2015, respectively.

Required:Prepare a schedule showing the distribution of dividends by amount and per share of preferred and common stock for each of the three years. The preferred stock is cumulative and nonparticipating.

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