Use the following information for all questions 1-5.

The annual report for Malibu Beachwear reported the following transactions affecting stockholder's equity:

1.Purchased $350,000 of its own common stock now held in treasury

2.Declared cash dividends in the amount of $260,000.

3.Paid the dividends in (b).

4.Issued 100,000 new shares of $0.10 par value common shares for $2 per share.

5.Closed the Dividends account.

Question 1

The Journal entry to record transaction 1. above is:

Question 1 options:

Cash$350,000

Common Stock$350,000

Treasury Stock$350,000

Common Stock$350,000

Treasury Stock$350,000

Cash$350,000

Dividend Payable$350,000

Cash$350,000

Question 2(2 points)

The Journal entry to record transaction 2. above is:

Question 2 options:

Cash$260,000

Dividend$260,000

Dividend$260,000

Common Stock$260,000

No Entry for this transaction

Dividend$260,000

Dividend Payable$260,000

Question 3(2 points)

The Journal entry to record transaction 3. above is:

Question 3 options:

Cash$260,000

Dividend$260,000

Dividend Payable$260,000

Cash$260,000

No Entry for this transaction

Dividend$260,000

Dividend Payable$260,000

Question 4(2 points)

The Journal entry to record transaction 4. above is:

Question 4 options:

Cash$200,000

Common Stock$200,000

Cash$10,000

Common Stock$10,000

Cash$200,000

Common Stock$10,000

PIC>Par$190,000

Cash$200,000

Treasury Stock$10,000

Common Stock$190,000

Question 5(2 points)

The Journal entry to record transaction 5. above is:

Question 5 options:

Cash$260,000

Common Stock$260,000

Retained Earnings$260,000

Dividends$260,000

Retained Earnings$260,000

Dividends Payable$260,000

Cash$260,000

Retained Earnings$260,000