Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares of its $2 par value common stock for $31 per share On June 30, Knapp declared a cash dividend of $1 50 per share to stockholders of record on July 31 Knapp paid the cash dividend on August 30 On November 1, Knapp reacquired 320,000 of its own shares of stock for $36 per share On December 22, Knapp resold 160,000 of these shares for $42 per share Required Prepare all of the necessary journal entries to record the events described above Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $8,500,000 A D E Record the issue of 1,000,000 authorized shares of $2 par value for $31 per share Note Enter debits before credits Transaction General Journal Debit Credit 1 Journal entry worksheet Record the repurchase of 320,000 shares for $36 per share Note Enter debits before credits Transaction General Journal Debit Credit 4 c Journal entry worksheet

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Posted on Jul 12, 2024

Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares of its $2 par value common stock for $31

Knapp Industries began business on January 1, 2018 by issuing all of its 1,600,000 authorized shares of its $2 par value common stock for $31 per share. On June 30, Knapp declared a cash dividend of $1.50 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 320,000 of its own shares of stock for $36 per share. On December 22, Knapp resold 160,000 of these shares for $42 per share.

Required:

Prepare all of the necessary journal entries to record the events described above.
Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $8,500,000.

A D E Record the issue of 1,000,000 authorized shares of $2 par value for $31 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Journal entry worksheet Record the repurchase of 320,000 shares for $36 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 c Journal entry worksheet