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Baxter Corporation Has 1,000 Shares of $5 Par Value Common Feb.\text {Feb.}

Question 85

Essay

Baxter Corporation has 1,000 shares of $5 par value common stock issued and outstanding.
Journalize the following Baxter transactions for 20XX:
Feb.\text {Feb.} \quad 1 Purchased 2 PU shares of treasury stock at $6.00.\text {Purchased 2 PU shares of treasury stock at \$6.00.}
\quad \quad \quad 20  Declared a $2.00 per share cash dividend payable on March 15\text { Declared a \(\$ 2.00\) per share cash dividend payable on March 15}
\quad \quad \quad  to stockholders of record March 1.\text { to stockholders of record March 1.}
Mar. \text {Mar. } \quad 15 Paid the cash dividend.\text {Paid the cash dividend.}
May\text {May} \quad 10  Declared a 10% stock dividend. The market value of the stock is $15.00 per share.\text { Declared a \(10 \%\) stock dividend. The market value of the stock is \$15.00 per share.}
May\text {May} \quad 30 Distributed the stock dividend.\text {Distributed the stock dividend.}
Jun\text {Jun} \quad 10  Reissued the treasury stock for $9.00.\text { Reissued the treasury stock for \(\$ 9.00\).}

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