On March 1^st, Apple Inc. issued 1,000 shares of $3 par value stock for a selling price of $10 per share.

On May 1^st, Apple Inc. reacquired 100 of the 1000 shares issued on March 1^st for $15 per share.

On June 1^st, Apple reissued 100 shares for $20 per share.

On June 10^th, Apple declared a $1 per share dividend

On June 12^th, Apple paid the dividend that it declared on June 10^th

1. What journal entry did Apple record on March 1^st?

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2. What journal entry did Apple record on May 1^st?

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3. What journal entry did Apple record on June 1^st?

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4. What journal entry did Apple record on June 10^th?

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5. What journal entry did Apple record on June 12^th?

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Revenue EXHIBIT 1: THE ITALIAN BAKERY-STATEMENT OF EARNINGS (FOR YEARS ENDING DECEMBER 31) Total sales Cost of goods sold Gross profit Operating expenses Administrative expenses Amortization Management salary Wages Utilities Advertising Insurance Telephone and Internet Fuel Repairs Miscellaneous Total operating expenses Operating income Interest expense Net earnings before taxes Income taxes Net income after taxes Source: Company files. Beginning retained earnings (Add) Net (Less) Dividends Ending retained earnings Source: Company files. 2014 $ 1,074,553 165,481 909,072 $ 2014 $ 23,963 20,325 75,000 584,064 80,756 10,763 20,350 7,837 5,867 6,374 1,736 837.035 72,037 12,364 59,673 12,531 $ 47.142 $ 62,453 47,142 (35,000) 74.595 $ 2013 1,023,384 161,695 861,689 29,804 20,325 75,000 549,120 $ 80,746 10,837 20,350 EXHIBIT 2: THE ITALIAN BAKERY-STATEMENT OF RETAINED EARNINGS (FOR YEARS ENDING DECEMBER 31) 2013 7,445 5,482 5,768 1,787 806.664 55,025 15.043 39,982 8,396 31,586 55,867 31,586 $ (25,000) 62.453 $ 2012 $ 984,023 144,651 839,372 $ 28,241 19,349 60,000 514,176 75,874 10,276 19,287 2012 6,854 5,093 6,164 1,884 747,198 92,174 10,167 82,007 17,221 64,786 26,082 64,785 (35,000) 55,867 Revenue EXHIBIT 1: THE ITALIAN BAKERY-STATEMENT OF EARNINGS (FOR YEARS ENDING DECEMBER 31) Total sales Cost of goods sold Gross profit Operating expenses Administrative expenses Amortization Management salary Wages Utilities Advertising Insurance Telephone and Internet Fuel Repairs Miscellaneous Total operating expenses Operating income Interest expense Net earnings before taxes Income taxes Net income after taxes Source: Company files. Beginning retained earnings (Add) Net (Less) Dividends Ending retained earnings Source: Company files. 2014 $ 1,074,553 165,481 909,072 $ 2014 $ 23,963 20,325 75,000 584,064 80,756 10,763 20,350 7,837 5,867 6,374 1,736 837.035 72,037 12,364 59,673 12,531 $ 47.142 $ 62,453 47,142 (35,000) 74.595 $ 2013 1,023,384 161,695 861,689 29,804 20,325 75,000 549,120 $ 80,746 10,837 20,350 EXHIBIT 2: THE ITALIAN BAKERY-STATEMENT OF RETAINED EARNINGS (FOR YEARS ENDING DECEMBER 31) 2013 7,445 5,482 5,768 1,787 806.664 55,025 15.043 39,982 8,396 31,586 55,867 31,586 $ (25,000) 62.453 $ 2012 $ 984,023 144,651 839,372 $ 28,241 19,349 60,000 514,176 75,874 10,276 19,287 2012 6,854 5,093 6,164 1,884 747,198 92,174 10,167 82,007 17,221 64,786 26,082 64,785 (35,000) 55,867