On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,400 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 710 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.30 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 4% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year. a.  Prepare the journal entry for the sale of the treasury stock on August 19, 2019. b. Calculate the number of shares of stock issued in the stock dividend.

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Asked Mar 15, 2020
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On January 1, 2019, Metco Inc. reported 296,000 shares of $6 par value common stock as being issued and outstanding. On March 24, 2019, Metco Inc. purchased for its treasury 2,400 shares of its common stock at a price of $39.00 per share. On August 19, 2019, 710 of these treasury shares were sold for $45.00 per share. Metco's directors declared cash dividends of $0.30 per share during the second quarter and again during the fourth quarter, payable on June 30, 2019, and December 31, 2019, respectively. A 4% stock dividend was issued at the end of the year. There were no other transactions affecting common stock during the year.

 

a.  Prepare the journal entry for the sale of the treasury stock on August 19, 2019.

 

b. Calculate the number of shares of stock issued in the stock dividend.

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Journal entry: Journal entry is a set of economic events which can be measured in monetary te...

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