On March 3, 2022, Docker Inc. purchased 800 shares of its own common stock in the market

Question:

On March 3, 2022, Docker Inc. purchased 800 shares of its own common stock in the market at a price of $10.75 per share. On August 29, 2022, 500 of these shares were sold in the open market at a price of $11.50 per share. There were 33,600 shares of Docker common stock outstanding prior to the March 3 purchase of treasury stock. A $0.60 per share cash dividend on the common stock was declared and paid on July 2, 2022.


Required:
Use the horizontal model (or write the entry) to show the effects on Docker’s financial statements of:
a. The purchase of the treasury stock on March 3, 2022.

b. The declaration and payment of the cash dividend on July 2, 2022.
c. The sale of the treasury stock on August 29, 2022.

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