Accounting 200: Comprehensive Homework 3: Part 4 Martin Corporation and Browning Corporation

Accounting 200
Comprehensive Homework 3

Part 4: Stockholder’s Equity
1) The following items were shown on the balance sheet of Martin Corporation on December 31, 2014:
Stockholders’ Equity
Paid-In Capital
Capital Stock
Common stock, $5 par value, 750,000 shares
authorized; ______ shares issued and ______ outstanding 3,000,000
Additional paid-in capital
In excess of par value 180,000
Total paid in capital 3,180,000
Retained Earnings 500,000
Total paid-in capital and retained earnings 3,680,000
Less: Treasury stock (20,000 shares) 280,000
Total stockholders’ equity $3,400,000

Complete the following statements and show your computations.
(a) The number of shares of common stock issued was ________________.
(b) The number of shares of common stock outstanding was ______________.
(c) The total sales price of the common stock when issued was ______________.
(d) How much did the treasury stock cost per share? $____________
(e) What was the average issue price of the common stock? $____________

2) On January 1, 2014, 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 15 Determine which shareholders are eligible to receive a dividend
June 30 Paid the $2.00 cash dividend
Dec. 1 Purchased 5,000 shares of common stock for the treasury for $18 per share

Prepare journal entries to record the above transactions. If no entry is required for a particular transaction, write down "No journal entry required".
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