Required A & B

Instruction:

Required A:

a) Record the issue of 2,000,000 authorized shares of $2 par value for $39 per share.

b) Record the declaration of the cash dividends of $1.50 per share.

c) Record the payment of the cash dividends of $1.50 per share.

d) Record the repurchases of 400,000 shares for $44 per share.

e) Record the reissue of 200,000 share for 50 per share.

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 $12,500,000.

Knapp Industries began business on January 1, 2018 by issuing all of its 2,000,000 authorized shares of its $2 par value common stock for $39 per share. On June 30, Knapp declared a cash dividend of $1.50 per share to stockholders of record on July 31. Knapp pald the cash dividend on August 30. On November 1, Knapp reacquired 400,000 of its own shares of stock for $44 per share. On December 22, Knapp resold 200,000 of these shares for $50 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 $12,500,000 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 Common Stock Additional Paid-In Capital A. Dividends Dividends Payable 3 Diwidends Payable Cash Treasury Stock Cash E5Cash Treasury Stock Additional Paid-in Capital Complete this question by entering your answers in the table below. Required A RequiredB the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $12,500,000. Knapp Industries Stockholders' Equity Balance Sheet as of December 31, 2018 Common Stock Additional Paid-in Capital Retained Earnings Dividends Less: Treasury Stock Total Stockholders' Equility