The stockholders equity section of DRB plcs balance sheet at December 31, 2016, was as follows: Common

Question:

The stockholders’ equity section of DRB plc’s at December 31, 2016, 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
Required
a. Prepare the journal entry required on January 9, 2017, if on that date DRB repurchased 50,000 shares of treasury stock for $ 750,000.
b. On March 23, 2017, DRB sold 10,000 of the treasury shares for $ 36 per share. Prepare the journal entry to record this transaction.
c. Prepare the journal entry required on June 30, 2017, assuming the firm sold 30,000 of the treasury shares for $ 25 per share.
d. Prepare the stockholders’ equity section of DRB’s on December 31, 2017, assuming that the company reported net income of $ 16,000,000 and declared and paid a cash of $ 1.75 per share at year end. Balance Sheet
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