Rolman Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In its first year the company has the following stock transactions.
|
10 |
Issued 400,000 shares of stock at $8 per share. |
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|
1 |
Purchased 10,000 shares of common stock for the treasury at $9 per share. |
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24 |
Declared a cash dividend of 10 cents per share on common stock outstanding. |
Instructions
(a) Journalize the transactions.
(b) Prepare the stockholders’ equity section of the balance sheet assuming the company had retained earnings of $150,600 at December 31.