Question

1 Corp X is authorized to issue 1,000,000 shares of Common Stock Par $1 No Entry since it was just authorized but not issued.

2 Corporation X issued 500,000 shares of Common Stock Par $1 for $ 8 per share

3 Corporation X issued 1,500,000 shares of Common Stock Par $1 for $10 per share

4 Corporation X reacquired 1,000,000 shares of their Common Stock Par $1 for $ 2

5 Sold 500,000 shares of treasury stock at $8 per share

6 Paid $ 2,000,000 in cash dividends to common stockholders that was declared last month

7 Net income for the year $ 800,000

Answer 1

Journal entries:
S.no.	Accounts title and explanations					Debit $	Credit $
1	No entry required.
2	Cash Account Dr.					4,000,000
	Common Stock Account (500,000 share @1)						500,000
	Paid in capital- Common Stock (500,000 shares @7)						3,500,000
3	Cash Account Dr.					15,000,000
	Common Stock Account (1500,000 share @1)						1,500,000
	Paid in capital- Common Stock (1500,000 shares @9)						13,500,000
4	Treasury stock Account Dr. (1000,000 share @2)					2,000,000
	Cash Account						2,000,000
5	Cash Account Dr. (500,000 shares @8)					4,000,000
	Treasury stock (500,000 shares @2)						1,000,000
	Retained earnings						3,000,000
6	Dividend payable Dr.					2,000,000
	Cash						2,000,000
7	Income Summary Dr.					800,000
	Retained earnings						800,000