Shareholders Equity
Presented below is information related to NewCo Corp shareholder transactions during 2023:
1. On January 1, the company was formed, and was authorized to issue 500,000 shares of $10 par value common stock.
2. On January 2, 225,000 shares were issued for $45 per share.
3. On March 31, NewCo issued a 1:5 reverse stock split.
4. On April 15, NewCo issued and distributed a 3% stock dividend, when the shares were valued at $10 per share. Shareholders with fractional shares were paid cash (totaling 1,350 equivalent whole shares).
5. On June 30, NewCo declared a cash dividend of $0.35, payable to the shareholders of record on July 15, to be paid on July 25.
6. On August 2, the company purchases 5,625 shares of the common stock outstanding at $203 per share and retired the shares.
7. On August 15, the company purchases 6,188 shares of the common stock outstanding at $270 per share and retired the shares.
8. On December 1, the board of directors declared a property dividend consisting of corporate bonds of Lopez Corporation that NewCo Corp was holding as an investment. The bonds were originally purchased for $1.9 million were classified as held-to-maturity investments. The bonds currently have a fair value of $1.75 million. The property dividend was payable to shareholders of record December 15, and distributed on December 31.
Instructions
(a) Prepare the general journal entries necessary to record these transactions. Identify each transaction by the date, and if no entry is required, write No Entry.
(b) How many shares were outstanding as of December 31, 2023