Prepare necessary journal entries to record the transactions


Problem: The following is the information on Aggie Corporation's Stockholder's Equity.

Stockholder's Equity December 31, 2005

Common Stock (9,000 shares issued, $10 par) 90,000

Additional Paid-in capital 90,000

Retained Earnings 150,000

TOTAL STOCKHOLDER'S EQUITY $330,000

During 2006, the following transactions affecting stockholders equity were completed by Aggie Corporation:

a. Jan. 4 Purchased 750 shares of its own outstanding common stock as treasury stock for $22 per share.

b. Dec. 15 Dividends on common stocks were declared. Common shareholders will receive a $0.50 per share cash dividend.

Required: Prepare the necessary journal entries to record the transactions for the year 2006.

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Accounting Basics: Prepare necessary journal entries to record the transactions
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