90.2K

Verified Solution

Link Copied!

Taking Flight Corporation designs and produces a line of golf equipment and golf apparel. Taking Flight has 100,000 shares of common stock outstanding as of the beginning of 2024. Taking Flight has the following transactions affecting stockholders' equity in 2024. March 1 Issues 49,000 additional shares of $1 par value common stock for $46 per share. May 10 Purchases 4,400 shares of treasury stock for $49 per share. June 1 Declares a cash dividend of $1.20 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,200 shares of treasury stock purchased on May 10 for $54 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

1. Record the issuance of 49,000 additional shares of $1 par value common stock for $46 per share.

2. Record the purchase of 4,400 shares of treasury stock for $49 per share.

3. Record the declaration of a cash dividend of $1.20 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.)

4. Record payment of the cash dividend declared on June 1.

5. Record the resale of 2,200 shares of treasury stock purchased on May 10 for $54 per share.

Answer & Explanation Solved by verified expert

See Answer