Chapter 15, Problem 15.7E

Treasury Stock Transactions, Disclosure. The stockholders equity section of DRB plc’s balance sheet at December 31, 2018, was as follows:

Common Stock - $3 par (2,000,000 shares authorized, 1,000,000 shares issued and outstanding)	$ 3,000,000
Additional Paid-in Capital in Excess of Par - Common	7,000,000
Retained Earnings	24,700,000
Total Stockholders’ Equity	$34,700,000

1. a. Prepare the journal entry required on January 9_, 2019, if on that date DRB repurchased 50,000 shares of treasury stock for $750,000.
2. b. On March 23, 2019, DRB sold 10,000 of the treasury shares for $36 per share. Prepare the journal entry to record this transaction.
3. c. Prepare the journal entry required on June 30, 2019, assuming that the firm sold 30,000 of the treasury shares for $25 per share.
4. d. Prepare the stockholders’ equity section of DRB's balance sheet on December 31, 2019, assuming that the company reported net income of $16,000,000 and declared and paid a cash dividend of $1.75 per share at year-end.