On July 31, a company declared a cash dividend of $0.25 per common share to the

shareholders of record on August 15. The cash dividend will be paid on August 25.

This company has 500,000 shares authorized and 100,000 shares outstanding.

Prepare the journal entries required on July 31 andAugust 25.

C- A company's only treasury stock transactions for the current year follow: (1) 1,000

shares of its common stock were purchased on June 1 for $40,000; (2) On July 1 it

reissued 500 of these shares at $45 per share; (3) On August 1 it reissued the 500

remaining treasury shares at $38 per share.

1) Prepare the journal entries required to record these transactions.

2) Calculate the balance in Paid-in Capital, Treasury Stock, on September 1

assuming its beginning-year balance is zero.

After you solve the questions your answer must include the following items :

- Explain in details the journal entries ( why its recorded in debit or credit side ) and

the nature of account Dr or Cr and its classification Assets , liabilities , owner's

equity , Revenue or expenses .

- Define the corporations and itsadvantages and disadvantages ?

- Define the following : Authorized capital - outstanding or issued capital - The Par

value - The Market Price - Common stock - preferred stock - paid capital -

cumulative and noncumulative preferred stock - participating and nonparticipating

preferred stock - treasury stock .

- What are the rights of shareholders and the items of their equity ?

- What are the types of investment in securities according to accounting standards

( Investment in marketable securities standard ) and its accounting treatment .

- Compare between cash dividend and stock dividend , why the corporations going to

stock dividend explain the reasons , types and the accounting treatment for each type

- What are the reasons for issuing the preferred stocks .