Prepare the journal entries to record the following transactions for W Corporati
ID: 2470302 • Letter: P
Question
Prepare the journal entries to record the following transactions for W Corporation. Jan. 1, 2015, W Corp. issued 102,000 shares of $8 par value common stock for $8 cash per share. Feb. 1, 2015, W Corp. issued 84,000 shares of $8 par value common stock for $9 cash per share. Feb. 9, 2015, W Corp. issued 5.000 shares of $8 par value common stock for $12 cash per share. Mar. 1, 2015, W Corp. purchased 7,500 shares of its own stock for $67,500 cash. Apr. 1, 2015, W Corp. reissued 1,650 shares of this treasury stock for $16,500. May 1, 2015, W Corp reissued 1,650 shares of this treasury stock for $13,200. June 15, 2015, W Corp declared a $225,000 cash dividend payable to common stockholders. June 30, 2015, W Corp, paid the dividend declared on June 15.Explanation / Answer
Solution:
Journal Entries to record the transactions for W Corporation:
Date
Account Title
Debit
Credit
Jan 1, 2015
Cash A/c Dr.
$816,000
To Common Stock A/c
$816,000
(102,000 Shares of $8 par value issued at par)
Feb 1, 2015
Cash A/c Dr.
$756,000
To Common Stock A/c
$672,000
To Additional Paid-in Capital (Securities Premium A/c)
$84,000
(84,000 Shares of $8 par value issued at premium of $1 per share)
Feb 9, 2015
Cash A/c Dr.
$60,000
To Common Stock A/c
$40,000
To Additional Paid-in Capital (Securities Premium A/c)
$20,000
(5,000 Shares of $8 par value issued at premium of $4 per share)
Mar 1, 2015
Treasury Stock Dr.
$67,500
To Cash
$67,500
(7,500 Shares buy back for $67,500)
Please ask separate question for rest part.... happy to help you..
Date
Account Title
Debit
Credit
Jan 1, 2015
Cash A/c Dr.
$816,000
To Common Stock A/c
$816,000
(102,000 Shares of $8 par value issued at par)
Feb 1, 2015
Cash A/c Dr.
$756,000
To Common Stock A/c
$672,000
To Additional Paid-in Capital (Securities Premium A/c)
$84,000
(84,000 Shares of $8 par value issued at premium of $1 per share)
Feb 9, 2015
Cash A/c Dr.
$60,000
To Common Stock A/c
$40,000
To Additional Paid-in Capital (Securities Premium A/c)
$20,000
(5,000 Shares of $8 par value issued at premium of $4 per share)
Mar 1, 2015
Treasury Stock Dr.
$67,500
To Cash
$67,500
(7,500 Shares buy back for $67,500)