Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 49

At the beginning of 2015, Thompson Service, Inc., showed the following amounts in the stockholders' equity section of its balance sheet:

The transactions relating to stockholders' equity during the year are as follows:

Instructions
a.repare in general journal form the entries to record the above transactions.
b.repare the stockholders' equity section of the balance sheet at December 31, 2015.se the format illustrated in Exhibit 12-6.nclude a supporting schedule showing your computation of retained earnings at that date.
c.ompute the maximum cash dividend per share that legally could be declared at December 31, 2015, without impairing the paid-in capital of Thompson Service.Hint: The availability of retained earnings for dividends is restricted by the cost of treasury stock owned.)