Selected data from the comparative balance sheets of Mock Company as of December 31, Year 1, and Year 2 appear below:
The following transactions occurred during Year 2:
a. March 1, Year 2: The company resold the Treasury shares on the market for $57 per share.
b. June 30, Year 2: The company declared and issued a 10-percent stock dividend at a time when the market price was $63 per share.
c. September 15, Year 2: The company issued additional shares of common stock on the open market for cash.
d. November 16, Year 2: The company issued new preferred shares on the open market for cash.
e. December 31, Year 2: Net income for Year 2 was $195,000. The company declared and paid cash dividends of $72,000 on the last day of the year.

Required:
Prepare journal entries for each of the transactions and events affecting these shareholders' equity accounts during Year 2.

Question

Selected data from the comparative balance sheets of Mock Company as of December 31, Year 1, and Year 2 appear below:
  The following transactions occurred during Year 2:
 a.	March 1, Year 2: The company resold the Treasury shares on the market for $57 per share.
b.	June 30, Year 2: The company declared and issued a 10-percent stock dividend at a time when the market price was $63 per share.
c.	September 15, Year 2: The company issued additional shares of common stock on the open market for cash.
d.	November 16, Year 2: The company issued new preferred shares on the open market for cash.
e.	December 31, Year 2: Net income for Year 2 was $195,000. The company declared and paid cash dividends of $72,000 on the last day of the year.

Required:
Prepare journal entries for each of the transactions and events affecting these shareholders' equity accounts during Year 2.

Quizplus · Accepted Answer

The Answer of Selected data from the comparative balance sheets of Mock Company as of December 31, Year 1, and Year 2 appear below:
  The following transactions occurred during Year 2:
 a.	March 1, Year 2: The company resold the Treasury shares on the market for $57 per share.
b.	June 30, Year 2: The company declared and issued a 10-percent stock dividend at a time when the market price was $63 per share.
c.	September 15, Year 2: The company issued additional shares of common stock on the open market for cash.
d.	November 16, Year 2: The company issued new preferred shares on the open market for cash.
e.	December 31, Year 2: Net income for Year 2 was $195,000. The company declared and paid cash dividends of $72,000 on the last day of the year.

Required:
Prepare journal entries for each of the transactions and events affecting these shareholders' equity accounts during Year 2.

Selected Data from the Comparative Balance Sheets of Mock Company