Horton Company began business on January 1, 2014 by issuing all of its 1,200,000 authorized shares of its $2 par value common stock for $23 per share. On June 30, they declared a cash dividend of $1.75 per share to stockholders of record on July 31. They paid the cash dividend on August 30. On November 1, Horton reacquired 240,000 of its own shares of stock for $28 per share. On December 22 they resold half of these shares for $34 per share.
Prepare all of the necessary journal entries to record the events described above.
1. Record the issue of 1,200,000 authorized shares of $2 par value for $23 per share.
2. Record the declaration of the cash dividends of $1.75 per share.
3. Record the payment of the cash dividends of $1.75 per share.
4. Record the repurchase of 240,000 shares for $28 per share.
5. Record the reissue of 120,000 share for 34 per share.
B. Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/2014 assuming that the Net Income for the year was $4,500,000.