Horton Company began business on January 1,2014 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $20 per share.On June 30,they declared a cash dividend of $1 per share to stockholders of record on July 31.They paid the cash dividend on August 30.On November 1,Horton reacquired 200,000 of its own shares of stock for $25 per share.On December 22 they resold half of these shares for $30 per share.
a.Prepare all of the necessary journal entries to record the events described above.
b.Prepare the stockholders' equity section of the balance sheet as of 12/31/2014 assuming that the net income for the year was $3,000,000.

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The Answer of Horton Company began business on January 1,2014 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $20 per share.On June 30,they declared a cash dividend of $1 per share to stockholders of record on July 31.They paid the cash dividend on August 30.On November 1,Horton reacquired 200,000 of its own shares of stock for $25 per share.On December 22 they resold half of these shares for $30 per share.
a.Prepare all of the necessary journal entries to record the events described above.
b.Prepare the stockholders' equity section of the balance sheet as of 12/31/2014 assuming that the net income for the year was $3,000,000.

Horton Company Began Business on January 1,2014 by Issuing All