Reference no: EM131921178

Question - Horton Company began business on January 1, 2014 by issuing all of its 1,150,000 authorized shares of its $1 par value common stock for $22 per share. On June 30, they declared a cash dividend of $1.50 per share to stockholders of record on July 31. They paid the cash dividend on August 30. On November 1, Horton reacquired 230,000 of its own shares of stock for $27 per share. On December 22 they resold half of these shares for $33 per share.

a. Prepare all of the necessary journal entries to record the events described above -

Record the issue of 1,150,000 authorized shares of $1 par value for $22 per share.

Record the issue of 1,150,000 authorized shares of $1 par value for $22 per share.

Record the declaration of the cash dividends of $1.50 per share.

Record the payment of the cash dividends of $1.50 per share.

Record the repurchase of 230,000 shares for $27 per share.

Record the reissue of 115,000 shares for 33 per share.

b. Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/2014 assuming that the Net Income for the year was $4,000,000.