Part A

Fun-Mart Inc. has 150,000 common shares issued at $10 each, and a balance in retained earnings of $200,000 as of December 31, 2019. (Total Shareholders equity is $1,700,000)

Required:

Journalize these transactions:

• May 15, 2020 - 10,000 common shares were repurchased at $8.00 each.
• August 15, 2020 20,000 common shares were repurchased at $11.50 each.
• December 1, 2020 A 10% stock dividend was declared on the remaining common shares. Market Price was $12.
• December 15, 2020 the stock dividend was distributed to the common shareholders.
• Bonus Question (2 extra marks): Compute the Weighted Average # of common shares outstanding in 2020. (Hint: 15 days count as month.)