Camp Corporation had the following balances in its stockholders equity
Camp Corporation had the following balances in its stockholders' equity at January 1:
During the year, Camp Corporation had the following transactions related to stockholders' equity:
Mar. 1 Issued 200,000 shares of common stock for cash at $8 per share.
July 1 Declared a 10% stock dividend, payable
August 1. The stock was trading at $7 per share on July 1.
Aug. 15 Declared a $0.50 per share cash dividend to stockholders of record on September 1, payable September 15.
Oct. 1 Bought back 6,000 shares of common stock for $45,000.
In addition to the above transactions, assume that during the year Camp generated net income of $520,000.
Required
a. Prepare the journal entries to record the four transactions.
b. Post all necessary items to a Retained Earnings T-account to update the account.
c. Prepare Camp's December 31 stockholders' equity section.
d. Using end-of-year outstanding shares, calculate earnings per share for the year.
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