Question
The following shareholders' equity section was taken from the books of the Victoria Corporation at the beginning of the current year: Common Stock, $5 par
The following shareholders' equity section was taken from the books of the Victoria Corporation at the beginning of the current year:
Common Stock, $5 par value, 1,000,000 shares authorized
194,400 shares issued and outstanding $ 972,000
Additional paid-in capital in excess of par - common $ 388,000
Additional paid-in capital from treasury stock transactions $ 0
Retained earnings $ 1,320,000
A. Prepare the journal entries required to record each of the following events:
Victoria acquired 17,000 share of common stock to be held in the treasury at a cost of $17 per share.
Victoria sold 5,200 shares of treasury stock at $20 per share.
Victoria sold 7,400 shares of treasury stock at $11 per share.
Victoria reported a net loss of $310,200 for the year.
The company declared and paid a $1.80 per share cash dividend at year-end.
B. Prepare the Shareholder's equity section at the end of the year.
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