Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 34

Treasury stock transactions On May 4, 2016, Docker, Inc., purchased 1,200 shares of its own common stock in the market at a price of $19.25 per share. On September 19, 2016, 700 of these shares were sold in the open market at a price of $20.50 per share. There were 48,200 shares of Docker common stock outstanding prior to the May 4 purchase of treasury stock. A $0.40 per share cash dividend on the common stock was declared and paid on June 15, 2016.
Required:
Use the horizontal model (or write the entry) to show the effects on Docker's financial statements of
a. The purchase of the treasury stock on May 4, 2016.
b. The declaration and payment of the cash dividend on June 15, 2016.
c. The sale of the treasury stock on September 19, 2016.