Part A: Entity C reports the following information after all adjusting entries had been made as of December 31, 2025:
Common Stock, par $20, authorized 100,000 shares, issued 34,000 680,000 shares, ? outstanding shares
Dividends declared and paid in 2025 16,000
Retained Earnings, January 1, 2025 78,000
Paid-in capital in excess of par 173,000
Treasury stock at cost (2,000) shares 25,000
Net income for 2025 was $40,000 for the year. The price of the stock at December 31, 2025 was $35 per share.
Required: Prepare a partial balance sheet of stockholders' equity in good form as of December 31, 2025, and then answer the questions below. You will have to determine ending retained earnings. For a similar example, take a look at the text at p. 11-36 (hard copy 11-37).
1. What is the dollar amount of total paid-in capital?
2. How many shares of common stock are outstanding?
3. What is the dividend payout ratio?
Part B: (+6)
Required: Make the following journal entries in good form:
1. On March 1, 2026, Entity C issued 1000 shares of common stock ($20 par value) at $41 per share.
2. On April 1, 2026, Entity C purchased 200 shares of its common stock for the treasury at $45 per share.