Reference no: EM133005226
Question - Chrome Company began 2021 with 25,000 shares of common stock issued and outstanding. Prior to 2021, the company had never purchased any of its own common stock. During 2021 and 2022, the following events occurred:
In November, 2021, the company acquired 1,600 shares of its own common stock for $15 per share.
In December, 2021, the company acquired another 1,400 shares of its own common stock for $16 per share.
Chrome's Board of Directors declared a cash dividend of $1.00 a share on December 31, 2021. The dividend is payable on January 20, 2022, to stockholders of record on January 10, 2022.
On January 4, 2022, the company sold 1,200 shares of the treasury shares that were acquired in November, 2021, for $18 per share.
On January 20, 2022, the cash dividend was paid to a transfer agent who is responsible for keeping Chrome's stockholder records and paying the company's cash dividends.
On March 10, 2022, the company sold all of its remaining treasury shares for $13 per share.
Required - Make journal entries to record all of the events described in 2021 and 2022.