Prepare the journal entries to record the following transactions for W Corporati
ID: 2470674 • 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
Date Accounts title Dr Cr $ 1-Jan Cash (102000*$8) 816000 Common Stock 816000 (Issue of common stock at par) 1-Feb Cash (84000*$9) 756000 Common Stock (84000*8) 672000 Paid in capital in excess od par-Common sTock (84000*1) 84000 (Being issue of common stock at premium) 9-Feb Cash (5000*$12) 60000 Common Stock (5000*8) 40000 Additional paid in capital-Common stock(5000*4) 20000 (Being issue of common stock at premium) 1-Mar Treasury Stock 67500 Cash 67500 (Being buy back of 7500 shares i.e 1 share for $9) 1-Apr Cash (1650*10) 16500 Treasury Stock (1650*9) 14850 Additional Paid in capital-Treasury stock 1650 (Being reissue of treasury stock) 1-May Cash 13200 Additional Paid in capital-Tresuary stock 3300 Treasury Stock (1650*9) 16500 (Being reissue of stock at lower price than purchased) 15-Jun Retained earnings 225000 Dividend payable 225000 (Being dividend declared) 30-Jun Dividend payable 225000 Cash 225000 (Being dividend paid)