Horton Company Began Business on January 1, 2011 by Issuing

Essay

Horton Company began business on January 1, 2011 by issuing all of its 1,000,000 authorized shares of its
$1 par value common stock for $20 per share. On June 30, they declared a cash dividend of $1 per share to
stockholders of record on July 31. They paid the cash dividend on August 30. On November 1, Horton reacquired 200,000 of its own shares of stock for $25 per share. On December 22 they resold half of these shares for $30 per share.
a. Prepare all of the necessary journal entries to record the events described above.
b. Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/2011 assuming that the Net Income for the year was $3,000,000.