National Supply's shareholders' equity included the following accounts at December 31, 2015: ($ in millions) Shareholders' Equity $ 6,000,000 Common stock, 6 million shares at $1 par Paid-in capital-excess of par Retained earnings 30,000,000 86,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Pre- pare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2016 February 17, 2017 November 9, 2018 Reacquired 300,000 shares at $8 per share. Reacquired 300,000 shares at $5.50 per share. Sold 200,000 shares at $7 per share (assume FIFO cost). 2. Prepare the shareholders' equity section of National Supply's balance sheet at December 31, 2018, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $14 million in 2016, $15 million in 2017, and $16 million in 2018. No dividends were paid during the three-year period.
Q: On January 1, 2014, Salalima Company had Common Stock of 800,000 authorizedshares with P20 par…
A: Since we answer upto three sub-parts, we shall answer first three. Please resubmit a new question…
Q: Captain Morgan Corporation was organized on January 1, 2017. During 2017, Captain had the following…
A: Stockholders’ equity: It refers to the residual amount of assets that are available to the company’s…
Q: On December 31, 2015, Raja Corporation's balance sheet reported the following: The following…
A: Treasury stock: Shares that are bought back by the company from the open market but not retired from…
Q: December 31, 2017, Raja Corporations's balance sheet reported the following: Stockholders' Equity…
A: Solution Concept Cost method of accounting for treasury stock While using the Cost method of…
Q: JKL Corp. reported the following amounts in the shareholders' equity section of its December 31,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:…
A: The process of recording business transactions in the books of accounts for the first time is known…
Q: Ebberle Company reported the following in the shareholders' equity section of its statement of…
A: Earnings per share = (Net income - Preferred dividend) / no. Of ordinary shares outstanding No. Of…
Q: The equity section of Atticus Group’s 2017 year-end balance sheet had 200,000 shares of $4 par value…
A: There are 2 kinds of stock splits:- 1. Forward stock split; 2. Reverse stock split
Q: Bentley Inc. had the following balances in its equity accounts at December 31, 2014. Common shares,…
A: Dividend: A dividend is a payment made by a business to its shareholders in exchange for their…
Q: Mingu Inc. had the following balances in its shareholders’ equity accounts at December 31, 2014:…
A: SOLUTION- JOURNAL ENTRIES ARE RECORDS OF FINANCIAL TRANSACTIONS FLOWING IN AND OUT OF YOUR BUSINESS.
Q: The shareholders’ equity of Core Technologies Company on June 30, 2015, included the following:…
A:
Q: In 2016, Borland Semiconductors entered into the transactions described below. In 2013, Borland had…
A:
Q: The Michael Company's stockholders' equity accounts have the following balances as of December 31,…
A: Outstanding shares = Shares issued - Treasury stock Outstanding shares = 25,000 - 2,000 Outstanding…
Q: ABC Corporation's shareholder's equity section as of January 1. 2015 showed: 100.000 Ordinary share…
A: Issue value per share = Ordinary share capital / No. of shares issued = 1100000/90000 shares =…
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000 shares of preferred…
A: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In…
Q: On December 31,2016, the shareholders' equity section of the financial position of Kent Corp. was as…
A: Firm issues various securities to arrange the funds for the business operations and pays return on…
Q: 1. What is the amount debited to accumulated profits as a result of the declaration of the 10% stock…
A: Dividend is the amount which the company gives to its shareholders out from the profits earned by…
Q: The equity section of Atticus Group’s 2017 year-end balance sheet had 200,000 shares of $4 par value…
A: Stockholders’ equity is the total value of money owned by the stockholders in the company after…
Q: The stockholder's Equity of BOA Incorporated at January 1, 2015 was as follows: Ordinary shares,…
A: Outstanding shares = Beginning shares issued and outstanding + No. of shares issued on Jan 4 - No.…
Q: On January 1, 2017, Windsor, Inc. had these stockholders’ equity balances. Common Stock, $1 par…
A: The Equity section is divided into several sub-parts like paid in capital, additional paid in…
Q: ABC Corporation's shareholder's equity section as of January 1, 2015 showed: 100,000 Ordinary share…
A: The journal entries are prepared to record day to day transactions of the business.
Q: The following data were presented for WENG company on Jan. 1, 2018: Ordinary share, par value 20,…
A: The treasury stock includes the shares that are repurchased by the company. The treasury stock…
Q: December 31, 2015, Raja Corporations' balance sheet reported the following: Stockholders' Equity…
A: The treasury stock are the own shares repurchased by the company from the market.
Q: Presented below is the stockholders' equity section of Oaks Corporation at December 31, 2014:…
A: Treasury stock consists of those shares which are reacquired or repurchased by the company from its…
Q: The stockholder's Equity of BOA Incorporated at January 1,2015 was as follows: Ordinary shares,…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: The equity section of Atticus Group’s 2017 year-end balance sheet had 200,000 shares of $4 par value…
A: Jan.5 Dividend ($0.50 * 40000) Dr $20000 Dividend payable Cr $20000 ( being dividend declared) feb.…
Q: The adjusted trial balance of ZZZ Corp. on December 31, 2014 includes the following account…
A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares…
A: Prepare journal entry to record the issuance of the shares.
Q: ohn Corp's shareholder equity section as of January 1, 2015 showed: 100,000 ordinary share…
A: solution concept reacquisition of share The reacquired share are recorded as treasury stock Upon the…
Q: The equity section of Atticus Group’s 2017 year-end balance sheet had 200,000 shares of $4 par value…
A: Journal is the first step in accounting. Recording of each and every transaction which affects the…
Q: At December 31, 2016, the records of Hoffman Company reflected the following balances in the…
A: Dividend is a sort of return given to the shareholders of an entity. It can either be in cash or in…
Q: The balance sheet of Chunn Industries included the following shareholders’ equity section at…
A: Entry to record the purchase and retirement of 1 million shares for $9 million:
Q: Field Company's stockholders' equity account balances at December 31, 2006, were as follows: Common…
A: Total stockholders equity in the business means total amount attributable to the shareholders of the…
Q: The capital accounts of Kay, Inc. on December 31, 2015 were as follows: Preference Share Capital,…
A: The shareholders' equity section represents the equity that belongs to the shareholders including…
Q: On January 1, 2016, the accounts of Mac Corporation showed the following: Common stock, par $1,…
A: Working: Number of shares issued and outstanding at beginning =Capital in excess of par value / per…
Q: The equity section of Atticus Group’s 2017 year-end balance sheet had 200,000 shares of $4 par value…
A: Stockholders' equity is the final amount left from assets available after paying off for all the…
Q: The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following…
A: a.
Q: The equity section of Atticus Group’s 2017 year-end balance sheet had 200,000 shares of $4 par value…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Calcula ended December 31, 2013. At the beginhning outstanding. On May 1, an additional 10,000…
A: Weighted average number of shares Outstanding = ( 40,000 * 12 months + 10,000 * 8 months - 5,000 *…
Q: Milton Company’s charter authorizes 1,000,000 shares of common stock and 400,000shares of preferred…
A: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In…
Q: Weisberg Corporation has 10,000 shares of $100 par value, 6%, preference shares and 50,000 ordinary…
A: a.
Q: In January 2014, ABC Corporation, a new corporation, issued 10,000 shares of common stock with a par…
A: Share Repurchase or Share Buyback means when company buy backs it's share from the investors. The…
Q: The December 31, 2014, equity section of Zalicus Inc.'s balance sheet appears below. Zalicus Inc.…
A: Introduction: Cumulative preferred shareholders have the right to receive regular dividends…
Q: During 2016, Moore Corp. had the following two classes of stock issued and outstanding for the…
A: Answer: Option c.
Q: Bizarre Company acquired 6,000 shares with P1 par value at P36 per share. During 2012, the entity…
A: When cost method is used to measure treasury shares. Then treasury shares are to be measured…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.
- Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.During 2012, Ponce Towers issued 30,000 additional shares of common stock on June 1 and 24,000 on November 1. The company earned 602,000 from continuing operations and 28,000 from another segment of the business that was discontinued during the year. Use your completed worksheet to prepare a computation of earnings per share for 2012. Erase any data in the Data Section that are not required for 2012. Save the solution for 2012 as EPS3 and print the results.Treasury Stock, Cost Method Bush-Caine Company reported the following data on its December 31, 2018, balance sheet: The following transactions were reported by the company during 2019: 1. Reacquired 200 shares of its preferred stock at 57 per share. 2. Reacquired 500 shares of its common stock at 16 per share. 3. Sold 100 shares of preferred treasury stock at 58 per share. 4. Sold 200 shares of common treasury stock at 17 per share. 5. Sold 100 shares of common treasury stock at 9 per share. 6. Retired the shares of common stock remaining in the treasury. The company maintains separate treasury stock accounts and related additional paid-in capital accounts for each class of stock. Required: 1. Prepare the journal entries required to record the treasury stock transactions using the cost method. 2. Assuming the company earned a net income in 2019 of 30.000 and declared and paid dividends of 10,000, prepare the shareholders equity section of its balance sheet at December 31, 2019.