Question
On January 1, 2016, Metco, Inc., reported 271,000 shares of $7 par value common stock as being issued and outstanding. On March 15, 2016, Metco,
On January 1, 2016, Metco, Inc., reported 271,000 shares of $7 par value common stock as being issued and outstanding. On March 15, 2016, Metco, Inc., purchased for its treasury 2,700 shares of its common stock at a price of $39.00 per share. On August 10, 2016, 600 of these treasury shares were sold for $45.50 per share. Metco's directors declared cash dividends of $0.50 per share during the second quarter and again during the fourth quarter, payable on June 30, 2016, and December 31, 2016, respectively. A 5% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year.
2.
value:
10.00 points
Required information
Required:
a-1.Use the horizontal model for the treasury stock purchase on March 15, 2016.(Use amounts with + for increases and amounts with for decreases.)
3.
value:
10.00 points
Required information
a-2.Prepare the journal entry for the treasury stock purchase on March 15, 2016.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
4.
value:
10.00 points
Required information
b.Calculate the total amount of the cash dividends paid in the second quarter.
5.
value:
10.00 points
Required information
c-1.Use the horizontal model for the sale of the treasury stock on August 10, 2016.(Use amounts with + for increases and amounts with for decreases.)
6.
value:
10.00 points
Required information
c-2.Prepare the journal entry for the sale of the treasury stock on August 10, 2016.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
7.
value:
10.00 points
Required information
d.Calculate the total amount of cash dividends paid in the fourth quarter.
8.
value:
10.00 points
Required information
e.Calculate the number of shares of stock issued in the stock dividend.
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