Court Casuals has 100,000 shares of common stock outstanding as of the beginning
ID: 2488420 • Letter: C
Question
Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year. May 18 Issues 20,000 additional shares of $1 par value common stock for $36 per share. May 31 Repurchases 5,000 shares of treasury stock for $41 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. July 31 Pays the cash dividend declared on July 1. August 10 Reissues 2,800 shares of treasury stock purchased on May 31 for $49 per share. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Explanation / Answer
Journal
Event
General journal
P.ref
Debit
Credit
May 18
Cash ($36 × 20,000)
$720,000
Common stock ($1 × 20,000)
$20,000
Additional paid-in capital ($35 × 20,000)
$700,000
To record issue of 20,000 shares at $36 each, par value $1 each.
May 31
Treasury stock ($41 × 5,000)
$205,000
Cash
$205,000
To record repurchase of 5,000 treasury stock at $41 each.
Event
General journal
P.ref
Debit
Credit
May 18
Cash ($36 × 20,000)
$720,000
Common stock ($1 × 20,000)
$20,000
Additional paid-in capital ($35 × 20,000)
$700,000
To record issue of 20,000 shares at $36 each, par value $1 each.
May 31
Treasury stock ($41 × 5,000)
$205,000
Cash
$205,000
To record repurchase of 5,000 treasury stock at $41 each.