Corporation began 2005 with the following balances: common stock, $20 par, 1000,
ID: 2387565 • Letter: C
Question
Corporation began 2005 with the following balances:common stock, $20 par, 1000,000 shares authorized,
75,000 outstanding $1,500,000
Paid-in capital in excess of par - common $500,000
Retained earnings $750,000
The following transaction were completed in January 2005. Prepare journal entries for these transactions :
Jan . 10 Reacquired 5,000 shares of its stock for $30 per share.
Jan . 20 Sold 2,000 shares of treasury stock for $33 per share.
Jan . 30 Sold the remaining shares of treasury stock for $25 per share
Explanation / Answer
Common Stock A/c....Dr 100000 Paid-in capital A/c.....Dr 50000 To Cash 150000 Cash A/c....Dr 66000 To Common Stock 40000 To paid in capital 26000 Cash A/c....Dr 75000 To Common Stock 50000 To paid in capital 25000 Happy to help