Using the information provided in E15- 5, prepare the journal entries to record the acquisition of the treasury stock, assuming that it is immediately retired. Also, prepare the journal entries to record the loss and the dividend transactions. Prepare the shareholders’ equity section at the end of the year. Round per share prices to four decimal places.
In E15- 5
98,950 shares issued and outstanding ……………………………… $989,500
Additional paid- in capital in excess of par – common ……………. 120,000
Additional paid- in capital from treasury stock transactions ………. 0
Retained earnings……….……….……….……….……….………. 1,545,000