Need help with this problem please Consider the following st

Need help with this problem please:

Consider the following statement of stockholders\' equity (Click the icon to view the statement of stockholders\' equity.) Use the statement of stockholders\' equity provided to answer the following questions Make journal entries to record the declaration and payment of cash dividends during 2016 2. 3. How much cash did the issuance of common stock bring in during 2016? What was the cost of treasury stock that was purchased during 2016? What was the cost of treasury stock that was sold during the year? For how much was the treasury stock sold during 2016? 1. Make journal entries to record the declaration and payment of cash dividends during 2016. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the declaration of cash dividends during 2016. (Do not yet record the payment of the dividend. We will do that in the following step.) Journal Entry Data Table Date Accounts Debit Credit Example Company Statement of Stockholder\'s Equity Year Ended December 31, 2016 Additional paid-in capital Total Common Retained Treasury Stockholders stock eamings stock Equity 120,000 Balance, December 31, 2015 Issuance of stock Net income Cash dividends Stock dividends Purchase of treasury stock Sale of treasury stock Balance, December 31, 2016 445,000 110,000 66,000 (40,000) 190,000 160,00D (25,000) S 20,000 90,000 66,000 (40,000) 28,000 (41,000) 13,000 (18,000) 19,000 582,000 (18,000) 10,000 318,000 145,000 (34,000)S 9,000 5 153,000 S Print Done

Solution

1. Journal entry :

2. Cash for issue of common stock = $110000

3. Cost of treasury stock purchased = 18000

Cost of trasury stock sold = 9000

Sale for treasury stock sold = 19000

Date	accounts & explanation	debit	credit
	Dividend a/c	40000
	Dividend payable a/c		40000
	(To record dividend declared)
	Dividend payable a/c	40000
	Cash a/c		40000
	(To record dividend paid)