Problem 4 ACCOUNTING FOR CORPORATION 40 POINTS

Gabriel Corporation is authorized by the SEC to issue 10,000 shares of common stock at a par value of $ 5. As of January 1, 2021, it has issued 1,000 shares of common stock. It has retained earnings as of January 1, 2021, of $ 100,000 and in common shares of $ 5,000.

The transaction of 2021 were:

Mar 1: Issued 5,000 shares of common stock for $20 per share of cost of market.

Jun 1: Declared a cash dividend for $3 per share.

Jun 10: Record the cash dividend of June 1.

Jun 15: Paid dividend of declared in June 1.

Sep 1: Issued 1,000 shares of common stock for $10 per share of cost of market.

Nov 1: Repurchase own shares, 2,000 at a cost of $12.

Nov 30: Sales the treasury stock for $20, 1,000 shares of treasury stock.

Dec 31: The company has the net income at the end of December 31, 2021, for $99,000

Instructions:

Prepare the journal entries and determined the total value in shares of common stock and treasury stock and prepare the stockholders equity section for this corporation.