Please Solve Question 4 5 Thank you rive Corporation design

Please Solve Question 4 & 5.

Thank you.

rive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive shares of common stock outstanding as of the beginning of 2018. Power Drive has the following transactions affecting sockholders\' equity in 201S March 1 Issues 65,000 additional shares of S1 par value common stock for $62 per share. May 10 Repurchases 6,000 shares of treasury stock for $65 per share. June 1 Declares a cash dividend of $2.00 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1. Reissues 3,000 shares of treasury stock purchased on May 10 for $70 per share. July October 21 Required: Record each of these transactions. Debit Credit Date General Journal

Solution

Date General Journal Debit Credit .March1 Cash $4,030,000 (65000*62) Common Stock $65,000 (65000*1) Additional paid in capital $3,965,000 (65000*(62-1) (To record issue of 65000 shares at $62per share) .May10 Treasury stock $390,000 (6000*65) Cash $390,000 (To record purchase of 6000 treasury stock at $ 65 each) .June1 Retained earnings $318,000 (2*(100000+65000-6000) Dividend payable $318,000 (To record declaration of cash dividend of $2 per share) .July 1 Dividend payable $318,000 Cash $318,000 (To record payment of dividend) .October21 Cash $210,000 (3000*70) Treasury Stock $195,000 (3000*65) 195000 Additional paid in capital $15,000 3000*(70-65) (To record reissue of 3000 Treasury stock at $70 per share) Common Stock Additional paid in capital Retained Earning Treasury Stock Total Stockholders Equity Balance January 1 $100,000 $5,500,000 $3,000,000 $0 $8,600,000 Issue Common Stock $65,000 $3,965,000 $4,030,000 Purchase Treasury stock ($390,000) ($390,000) Cash Dividends ($318,000) ($318,000) Sale of treasury stock $15,000 $195,000 $210,000 Net Income $700,000 $700,000 Balance December 31 $165,000 $9,480,000 $3,382,000 ($195,000) $12,832,000