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Analysis:Issue of stock, Treasury stock, and Dividends

What did you find to be the most challenging part of this problems? Explain why.

Rolman Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In its first year the company has the following stock transactions.
Jan. 10 Issued 400,000 shares of stock at $8 per share.
Sept. 1 Purchased 10,000 shares of common stock for the treasury at $9 per share.
Dec. 24 Declared a cash dividend of 10 cents per share on common stock outstanding.
Instructions What did you find to be the most challenging part of this problems? Explain why.

a. I dont need the Journalize transactions.
b. I don't need you to prepare the stockholders' equity section of the balance sheet assuming the company had retained earnings of $150,600 at December 31.
What did you find to be the most challenging part of this problems? Explain why.

Solution Preview

Problems encountered when accounting for the issue and repurchase of stock by a firm.

Issue and Repurchase of shares
What did you find to be the most challenging part of this problems? Explain why.
200 words

Rolman Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. In its first year the company has the following stock transactions.
Jan. 10 Issued 400,000 shares of stock at $8 per share.
Sept. 1 Purchased 10,000 shares of common stock for the treasury at $9 per share.
Dec. 24 Declared a cash ...

Solution Summary

The solution discusses what was found to be the most challenging part of the given problems and why.

$2.19