Question

5. Show the journal to record the declaration of cash dividends. The amount declared is $2,915 on the statement of equity. The amount actually paid on the cash flow statement is $2,905. Show journal entry here: Date Accounts Debit Credit Note-we will ignore the $1mil reduction in Retained Earnings on the Treasury Stock/other line. We aren't given enough information to re-create this journal entry. 7. We can move to the Treasury Stock Column next. We see that treasury stock was purchased. Notice that the change in the Treasury Stock account equals the cash received from sale of common stock on the cash flow statement. Show the journal entry for the purchase of treasury stock. Date Accounts Debit Credit

Answer 1

5	Date	Accounts	Debit	Credit
		Cash dividends	2915
		Cash dividends payable		2915
		(To record the declaration of cash dividends)
7	Date	Accounts	Debit	Credit
		Treasury stock	164
		Cash		164
		(To record the purchase of treasury stock)