On December 31, 2009, Jamfest Travel Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30, 2010, the firm issued an additional 135,000 shares for $7 per share. The 2010 income was $319,200. On September 1, 2009, a 15 percent stock dividend was issued to all common shareholders. On October 1, 2011, 60,000 shares were reacquired as treasury shares. Net income in 2011 was $278,063.

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The Answer of On December 31, 2009, Jamfest Travel Inc. had 450,000 shares of no-par common stock issued and outstanding. All shares were sold for $7.50. On June 30, 2010, the firm issued an additional 135,000 shares for $7 per share. The 2010 income was $319,200. On September 1, 2009, a 15 percent stock dividend was issued to all common shareholders. On October 1, 2011, 60,000 shares were reacquired as treasury shares. Net income in 2011 was $278,063.