College Students\' El Course: ACC111:DL ch 11 Flashcards E Menu QUESTION To Not
ID: 2437237 • Letter: C
Question
College Students' El Course: ACC111:DL ch 11 Flashcards E Menu QUESTION To Not yet answered Points out of 10.00 lag question Treasury Stock inland Corporation Issued 50,000 shares of $4 par value common stock at $25 per share and 9,000 shares of $36 par value, ten percent preferred stock at $102 per share. Later, the company purchased 2,000 shares of its own common stock at $28 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Inland sold 1,500 shares of the treasury stock at $34 per share. Prepare the general journal entry to record the sale of this treasury stock. c. Assume that Inland sold the remaining 500 shares of treasury stock at $24 per share. Prepare the journal entry to record the sale of this treasury stock. General Journal Debit Credit Ref. Descriptiorn a. Common stock Issued shares of common stock 10% Preferred stockExplanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. a-1 Cash 1,250,000.00 50,000 Shares X $25 Common Stock 200,000.00 50,000 Shares X $4 Paid in Capital in Excess of Par - Common Stock 1,050,000.00 50,000 Shares X $21 (To record the issue of Common Stock) a-2 Cash 918,000.00 9,000 Shares X $102 Preferred Stock 324,000.00 9,000 Shares X $36 Paid in Capital in Excess of Par - Preferred Stock 594,000.00 9,000 Shares X $66 (To record the issue of Preferred Stock) a-3 Treasury Stock 56,000.00 2,000 Shares X $28 Cash 56,000.00 (To record the purchase of Treasury Stock) b. Cash 51,000.00 1,500 Shares X $34 Treasury Stock 42,000.00 1,500 Shares X $28 Paid in Capital in Excess of Par - Treasury Stock 9,000.00 1,500 Shares X $6 (To record the sale of Treasury Stock) c. Cash 12,000.00 500 Shares X $24 Paid in Capital in Excess of Par - Treasury Stock 2,000.00 500 Shares X $4 Treasury Stock 14,000.00 500 Shares X $28 (To record the sale of Treasury Stock)