Reference no: EM131779612

Question - On January 1, 2011, Browning Corporation had 550,000 shares of $1 par value common stock issued and outstanding. There was a $900,000 balance in the Retained Earnings account at the beginning of the year. During the first quarter of the year, the following transactions occurred:

Jan. 8 - Issued 50,000 shares of its own common stock for $500,000.

Jan. 15 - Declared a cash dividend of $1.50 per share to stockholders of record on Jan. 10.

Jan. 31 - Paid the $1.50 cash dividend declared on Jan. 15.

Feb. 2 - Purchased 10,000 shares of its own common stock for the treasury at $12 per share.

Feb. 14 - Declared a 2 for 1 stock split on outstanding shares.

March 25 - Sold 4,000 shares of the treasury stock purchased on Feb. 2 for $14 per share.

Instructions - Prepare journal entries to record the above transactions.