Problem - MI Air, Inc. engages in the following common stock transactions in 2017 for its $1 par value common stock. The firm earned $200 of net income during 2017, its first year of business.
January 1-Issued 200 shares to an investor for $8 per share.
December 1-Purchased 40 of the shares sold to the investor for $10 per share, and placed them in the corporate treasury.
December 10-Issued 75 shares to another investor at $9 per share in order to secure additional financing for the firm.
December 12-Issued 30 of the treasury shares when the market price was $11 per share.
December 15-Declared a $.20 per share dividend.
December 31-Paid the dividend declared on December 15.
Requirements: (Use T accounts as necessary to track account balances)
Journalize the above transactions.
Present the effects of the stock transactions on MI Air's 2017 income statement,
Report stockholders' equity on the company's December 31, 2017 balance sheet.