(Learning Objective 2, 3, 4: Recording stock issuance, treasury stock, and dividend transactions) At December 31, 20X7, Blumenthall Corporation reported the stockholders’ equity accounts shown here (as adapted, with dollar amounts in millions, except share amounts).
|
Common stock $1.50 par value per share, 1,800 million shares issued |
$ 2,700 |
|
Capital in excess of par value |
8,100 |
|
Retained earnings |
1,200 |
|
Treasury stock, at cost |
0 |
|
Total stockholders’ equity |
$12,000 |
Blumenthall’s 20X8 transactions included the following:
a. Net income, $440 million.
b. Issuance of 6 million shares of common stock for $12.50 per share.
c. Purchase of 1 million shares of treasury stock for $14 million.
d. Declaration and payment of cash dividends of $30 million.
Journalize Blumenthall’s transactions in b, c, and d. Explanations are not required.