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please check my work Knapp Industries began business on January 1, 2018 by issuing all of its 1,150,000 authorized shares of its $1 par value
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Knapp Industries began business on January 1, 2018 by issuing all of its 1,150,000 authorized shares of its $1 par value common stock for $22 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 230,000 of its own shares of stock for $27 per share. On December 22, Knapp resold 115,000 of these shares for $33 per share. Required: a. Prepare all of the necessary journal entries to record the events described above. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $4,000,000. Complete this question by entering your answers in the table below. Required A Required B Prepare all of the necessary journal entries to record the events described above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Cash 25,300,000 Common Stock 1,150,000 Additional Paid-In Capital 24,150,000 Dividends 1,725,000 Dividends Payable 1,725,000 Dividends Payable 1,725,000 Cash 1,725,000 Treasury Stock 6,210,000 Cash Overage 6,210,000 Cash Treasury Stock 3,795,000 3,105,000 690,000 Additional Paid-In Capital Required A Required B > Knapp Industries began business on January 1, 2018 by issuing all of its 1,150,000 authorized shares of its $1 par value common stock for $22 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 230,000 of its own shares of stock for $27 per share. On December 22, Knapp resold 115,000 of these shares for $33 per share. Required: a. Prepare all of the necessary journal entries to record the events described above. b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $4,000,000. Complete this question by entering your answers in the table below. Required A Required B Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $4,000,000. Knapp Industries Stockholders' Equity Balance Sheet as of December 31, 2018 $ 1,150,000 Common Stock Additional Paid-in Capital 24,150,000 690,000 2,275,000 28,265,000 3,105,000 $ 25,160,000 Retained Earnings Less: Treasury Stock Total Stockholders' Equilty Step by Step Solution
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