Problem 4 Part A:

During 2015, the following transactions occurred at West Mar Industries. March 20, 2015, the Company Purchased 12,000 shares of its own common stock at $20.00 per share. October 5, 2015 the Company sold 3,000 of the shares it purchased on March 20, 2015 for $25.00 per share.

Please prepare the journal entries for the above transactions.

Part B: The Teflon Companys Board of Director declared a dividend on the Companys 1,250,000 issued and outstanding common shares. The Board of Directors authorized the dividend in accordance with the following schedule.

December 10, 2015 declared a dividend of $.50 per share of common stock December 15, 2015 date of record for shareholders December 28, 2015 payment date

Please prepare appropriate journal entries, if any, on dates listed.

Part C: The Maxim Corporation has 1,000,000 shares of common stock authorized and 300,000 issued and outstanding. The par value of the stock is $1.00 per share. The Board of Directios has declared a 30% stock dividend. Please prepare the appropriate journal entry to record stock dividend. The market value of the stock at the time of the stock dividend is $4.00 per share.