On January 1, 20X1, Browning Corporation had 75,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred: Mar. 1 Issued 90,000 shares of common stock for $675,000 June 1 Declared a cash dividend of $2.00 per share to stockholders of record on June 15 June 30 Paid the $2.00 cash dividend Dec. 1 Purchased 5,000 shares of common stock for the treasury for $18 per share Dec. 15 Declared a cash dividend on outstanding shares of $2.50 per share to stockholders of record on December 31 Net income for 20X1 amounted to $951,000. Prepare journal entries to record the above transactions.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 20X1, Browning Corporation had 75,000 shares of $1 par value common stock issued and

outstanding. During the year, the following transactions occurred:

Mar. 1 Issued 90,000 shares of common stock for $675,000

June 1 Declared a cash dividend of $2.00 per share to stockholders of record on June 15

June 30 Paid the $2.00 cash dividend

Dec. 1 Purchased 5,000 shares of common stock for the treasury for $18 per share

Dec. 15 Declared a cash dividend on outstanding shares of $2.50 per share to stockholders of record

on December 31

Net income for 20X1 amounted to $951,000.

Prepare journal entries to record the above transactions.

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