On January $1,2022,$ Metco Incorporated reported $251,000$ shares of $$2$ par value common stock as being issued and outstanding. On March $24,2022,$ Metco$$Incorporated purchased for its treasury $2,500$ shares of its common stock at a price of $$39\mathrm{.}00$ per share. On August $19,2022,530$ of these treasury shares were sold for $$48\mathrm{.}00$ per share. Metco's directors declared cash dividends of $$0\mathrm{.}30$ per share during the second quarter and again during the fourth quarter, payable on June $30,2022,$ and December $31,2022,$ respectively. A $5\%$ stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year.

Required:

a$-1.$ Use the horizontal model for the treasury stock purchase on March $24,2022.$ Indicate the financial statement effect.

Note: Enter decreases with a minus sign to indicate a negative financial statement effect.

a$-2.$ Prepare the journal entry for the treasury stock purchase on March $24,2022.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the purchase of $2,500$ shares of treasury stock @ $$39$ per share.

Note: Enter debits before credits.

b$.$ Calculate the total amount of the cash dividends paid in the second quarter.

Dividend paid

c$-1.$ Use the horizontal model for the sale of the treasury stock on August $19,2022.$ Indicate the financial statement effect.

Note: Enter decreases with a minus sign to indicate a negative financial statement effect.

c$-2.$ Prepare the journal entry for the sale of the treasury stock on August $19,2022.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the sale of $530$ shares of treasury stock @ $$48$ per share.

Note: Enter debits before credits.

d$.$ Calculate the total amount of cash dividends paid in the fourth quarter.

e$.$ Calculate the number of shares of stock issued in the stock dividend.