WEEK $12$ BUSINESS, INC. $($A tutoring company$)$

WEEK 12 BUSINESS, INC. (A tutoring company) ASSETS C D EQUITY DVOENDS PAYABLE COMMON ADDITONAL PAO CAPITAL TREASURY DVOENDS REVENUE WEEK 12 Business, Inc. files Articles of Incorporation (corporate charter) with the State of Wisconsin. The articles state the corporation shall be authorized to issue 100 shares of common stock. The par value of the stock is $200. There is great interest in the company although no stock has been sold at this point. Adam purchases 40 shares of stock at par value ($200) from the company. Adam gives cash for his investment. Bill purchases 50 shares of stock. He pays cash at price of $240 per share. The company is doing so well it makes the decision to repurchase some of its stock. Nine shares in total are repurchased at a total price of $140 per share ($1,260 in total). Cash is paid. A dividend in the amount of $10 per share is declared. But not paid. Any previously declared dividends are paid using cash. See E.