The stockholders equity section of Nielsen Corporation s December 31, 2002, balance sheet is as follows: Stockholders equity: Preferred stock (10%, $50 par, 10,000 shares authorized, 1,000 shares issued and outstanding) $ 50,000 Common stock ($15 par, 100,000 shares authorized, 5,000 shares issued and outstanding) 75,000 Paid-in capital in excess of par, preferred stock

Accounting Aug 28, 2020

The stockholders equity section of Nielsen Corporation s December 31, 2002, balance sheet is as follows:

Stockholders equity:
Preferred stock (10%, $50 par, 10,000 shares authorized,
1,000 shares issued and outstanding)	$ 50,000
Common stock ($15 par, 100,000 shares authorized,
5,000 shares issued and outstanding)	75,000
Paid-in capital in excess of par, preferred stock .	2,000
Paid-in capital in excess of par, common stock .	25,000
Total contributed capital.	$152,000
Retained earnings.	102,000
Total stockholders equity	$254,000

During 2003, Nielsen Corporation had the following transactions affecting stockholders equity:

Jan. 20 Paid a cash dividend of $2 per share on common stock. The dividend was declared on December 15, 2002.

Aug. 15 Reacquired 1,000 shares of common stock at $20 per share.

Sept. 30 Reissued 500 shares of treasury stock at $21 per share.

Oct. 15 Declared and paid cash dividends of $3 per share on the common stock.

Nov. 1 Reissued 200 shares of treasury stock at $18 per share.

Dec. 15 Declared and paid the 10% preferred cash dividend.

Dec. 31 Closed net income of $40,000 to Retained Earnings. (Revenues were $260,000; expenses were $220,000.) Also closed the dividends accounts to Retained Earnings.

Required

1. Journalize the transactions.

2. Prepare the stockholders equity section of Nielsen Corporation s December 31, 2003, balance sheet.

3. Interpretive Question: What is the effect on earnings per share when a company purchases treasury stock