Mulberry Street Inc. began business on January 1, 2011 by issuing all of its 1000 authorized shares of its
$3 par value common stock for $10 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, Mulberry Street reacquired 100 of its own shares of stock for $12 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 12/31/2011 assuming that the Net Income
for the year was $30,000.

Question

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The Answer of Mulberry Street Inc. began business on January 1, 2011 by issuing all of its 1000 authorized shares of its
$3 par value common stock for $10 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, Mulberry Street reacquired 100 of its own shares of stock for $12 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 12/31/2011 assuming that the Net Income
for the year was $30,000.