Warner Corporation stockholders’ equity consisted of the
following on January 1, 2015:
Common Stock, no par, $15 stated value, 1,000,000 shares
400,000 shares issued and outstanding
Additional Paid-In Capital
APIC – Common Stock
Total Paid-In Capital
Total Stockholders’ Equity
Prepare the appropriate journal entries, if any, for the
following transactions in 2015. If no journal entry is required,
please clearly indicate that. Show your
2/20/15: Issued 60,000 shares of common stock for $35 per
3/31/15: The Board of Directors declared a cash dividend on
common stock of $2.00 per share, payable on May 1, to stockholders
of record on April 15.
4/15/15: Date of record for cash dividends on common stock.
5/1/15: Paid the cash dividend to common stockholders.
10/10/15: Purchased 20,000 shares of their common stock as
treasury stock for $40 per share.
Prepare the Stockholder’s Equity section of the Balance Sheet
for December 31, 2015