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Why is it 800,000? Can someone explain this entire solution pls A firm has 1,000,000 authorized shares (par value of $1/share) of common stock. They
Why is it 800,000? Can someone explain this entire solution pls
A firm has 1,000,000 authorized shares (par value of $1/share) of common stock. They have issued 500,000 shares inception-to-date. These shares were issued at an average price of $15/share. The firm has recently repurchased 100,000 common shares at an average cost of $22/share. a. What is the journal entry to record the repurchase of the common shares? Treasury Stock $2,200,000 Cash $2,200,000 b. The firm then declared and paid a $2/share cash dividend. What is the journal entry to record the declaration and payment of the dividend? Declaration Retained Earnings $800,000 Dividend Payable $800,000 Payment Dividend Payable Cash $800,000 $800,000
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