Court Casuals has 100,000 shares of common stock outstanding as of the beginning
ID: 2513666 • 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 25,000 additional shares of $1 par value common stock for $35 per share.
May 31 Repurchases 6,000 shares of treasury stock for $44 per share.
July 1 Declares a cash dividend of $1 per share to all stockholders of record on July 15.
Hint: Dividends are not paid on treasury stock.
July 31 Pays the cash dividend declared on July 1.
August 10 Reissues 2,900 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
Record each of these transactions
Date accountss & explantion debit credit May 18 Cash 875000 Common stock 25000 Paid in capital in excess of par value-common stock 850000 (To record issue common stock) May 31 Treasury stock 264000 Cash 264000 (To record treasury stock repurchased) July 1 Cash dividend (25000-6000)*1 19000 Cash dividend payable 19000 (To record dividend declared) July 15 No entry July 31 Cash dividend payable 19000 Cash 19000 (To record dividend paid) Aug 10 Cash (2900*49) 142100 Treasury stock (2900*44) 127600 Paid in capital from sale of treasury stock (2900*5) 14500 (To record reissue treasury stock)