Problem 15-2 (Part Level Submission) (a) Date Account Titles and Explanation Deb
ID: 2339396 • Letter: P
Question
Problem 15-2 (Part Level Submission)
(a)
Date
Account Titles and Explanation
Debit
Credit
Mar. 1
Mar. 18
Open Show Work
Problem 15-2 (Part Level Submission)
Splish Company had the following stockholders’ equity as of January 1, 2017.Common stock, $5 par value, 18,200 shares issued $91,000 Paid-in capital in excess of par—common stock 299,000 Retained earnings 320,000 Total stockholders’ equity $710,000
During 2017, the following transactions occurred.
Feb. 1 Splish repurchased 1,990 shares of treasury stock at a price of $17 per share. Mar. 1 850 shares of treasury stock repurchased above were reissued at $15 per share. Mar. 18 530 shares of treasury stock repurchased above were reissued at $15 per share. Apr. 22 580 shares of treasury stock repurchased above were reissued at $19 per share.
Explanation / Answer
Journal entry :
Date account and explanation debit credit Feb 1 Treasury stock (1990*17) 33830 Cash 33830 (To record treasury stock purchased) Mar 1 Cash (850*15) 12750 Retained earnings 1700 Treasury stock (850*17) 14450 (To record treasury stock sold) Mar 18 Cash (530*15) 7950 Retained earnings (530*2) 1060 Treasury stock (530*17) 9010 (To record treasury stock sold) Apr 22 Cash (580*19) 11020 Treasury stock (580*17) 9860 Paid in capital from sale of treasury stock 1160 (To record treasury stock sold)