Problem 1s-6 (Part Level Submlsslon) Ivanhoe Company has the following stockhold
ID: 2412970 • Letter: P
Question
Problem 1s-6 (Part Level Submlsslon) Ivanhoe Company has the following stockholders' equity accounts at December 31, 2017. Common Stock ($100 par value, authortzed 7,600 shares) $503,200 Retained Earnings 276,100 Prepare entries In journal form to record the following transactions, which took place during 2018. (Credit socount titles are automatically Inden entered. Do not Indent manually. Ir no entry Is required, select "No Entry" for the account tities and enter O for the amounts.) (1) 270 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $21 per share cash dividend was declared (3) The dividend declared in (2) above was paid (4) The treasury shares purchased in (1) above were resold at $103 per share (5) 550 shares of outstanding stock were purchased at $106 per share. (6) 370 of the shares purchased in (5) above were resold at $96 per share. No. Account Titles and Explanation 2. Privacy Policy 2000-2018 John Wiley & Sons, Ins, All Rights Reserved. A Division of John Wiley & Sons Inc. 18 ? 5 6 9 2 3 NII MExplanation / Answer
Answers
No.
Accounts title & Explanations
Debit
Credit
Working
1
Treasury Stock
$ 26,190.00
[270 shares x $97]
Cash
$ 26,190.00
[270 shares x $97]
(shares re acquired)
2
Dividends
$ 1,00,002.00
[(5032 shares - 270 shares) x $21 per share
Dividends payable
$ 1,00,002.00
(dividens declared on outstanding shares)
3
Dividends payable
$ 1,00,002.00
Cash
$ 1,00,002.00
(dividend paid in cash)
4
Cash
$ 27,810.00
[270 shares x $103]
Treasury Stock
$ 26,190.00
[270 shares x $97]
Additional Paid in capital - Treasury Stock
$ 1,620.00
[270 shares x $6]
(shares re issued at $103)
5
Treasury Stock
$ 58,300.00
[550 shares x $106]
Cash
$ 58,300.00
[550 shares x $106]
(shares re acquired)
6
Cash
$ 35,520.00
[370 shares x $96]
Additional Paid in capital - Treasury Stock
$ 1,620.00
[balance remaining after entry no. 4]
Retained Earnings
$ 2,080.00
[balancing figure: 39220 - 35220 - 1620]
Treasury Stock
$ 39,220.00
[370 shares x $106]
(shares re issued at $96)
No.
Accounts title & Explanations
Debit
Credit
Working
1
Treasury Stock
$ 26,190.00
[270 shares x $97]
Cash
$ 26,190.00
[270 shares x $97]
(shares re acquired)
2
Dividends
$ 1,00,002.00
[(5032 shares - 270 shares) x $21 per share
Dividends payable
$ 1,00,002.00
(dividens declared on outstanding shares)
3
Dividends payable
$ 1,00,002.00
Cash
$ 1,00,002.00
(dividend paid in cash)
4
Cash
$ 27,810.00
[270 shares x $103]
Treasury Stock
$ 26,190.00
[270 shares x $97]
Additional Paid in capital - Treasury Stock
$ 1,620.00
[270 shares x $6]
(shares re issued at $103)
5
Treasury Stock
$ 58,300.00
[550 shares x $106]
Cash
$ 58,300.00
[550 shares x $106]
(shares re acquired)
6
Cash
$ 35,520.00
[370 shares x $96]
Additional Paid in capital - Treasury Stock
$ 1,620.00
[balance remaining after entry no. 4]
Retained Earnings
$ 2,080.00
[balancing figure: 39220 - 35220 - 1620]
Treasury Stock
$ 39,220.00
[370 shares x $106]
(shares re issued at $96)