Waterway Company has the following stockholders equity accounts at December 31, 2020.

Common Stock ($100 par value, authorized 8,300 shares)		$490,300
Retained Earnings		303,000

(a)

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Prepare entries in journal form to record the following transactions, which took place during 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(1)		260 shares of outstanding stock were purchased at $98 per share. (These are to be accounted for using the cost method.)
(2)		A $21 per share cash dividend was declared.
(3)		The dividend declared in (2) above was paid.
(4)		The treasury shares purchased in (1) above were resold at $103 per share.
(5)		460 shares of outstanding stock were purchased at $105 per share.
(6)		380 of the shares purchased in (5) above were resold at $97 per share.

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.
6.

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(b)

Prepare the stockholders equity section of Waterway Companys balance sheet after giving effect to these transactions, assuming that the net income for 2021 was $86,700. State law requires restriction of retained earnings for the amount of treasury stock. (Enter account name only and do not provide descriptive information.)

WATERWAY COMPANY Stockholders Equity December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021
			$
Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity
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Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders' Equity			$

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