1. In 2013, Western Transport Company entered into the treasury stock transactions described below. In 2011, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.
Required: Prepare the appropriate journal entry for each of the following transactions:
1. On January 23, 2013, Western Transport reacquired 10 million shares at $20 per share.
2. On September 3, 2013, Western Transport sold 1 million treasury shares at $21 per share.
3. On November 4, 2013, Western Transport sold 1 million treasury shares at $18 per share.
2. The shareholders’ equity of Core Technologies Company on June 30, 2012, included the following:
Common stock, $1 par; authorized, 8 million shares;
issued and outstanding, 3 million shares $ 3,000,000
Paid-in capital—excess of par 12,000,000
Retained earnings 14,000,000
On April 1, 2013, the board of directors of Core Technologies declared a 10% stock dividend on common shares, to be distributed on June 1. The market price of Core Technologies’ common stock was $30 on April 1, 2013, and $40 on June 1, 2013.
Required:
Prepare the journal entry to record the distribution of the stock dividend on the declaration date.