Prepare journal entries to record each transaction. (If no entry is required for
ID: 2527110 • Letter: P
Question
Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1
Record the issuance of 58,000 shares of common stock with a par value $10 for a price of $12 per share.
2
Record the purchase of 1,800 shares of previously issued common stock for a price of $15 per share.
3
Record the re-issuance of 900 shares of treasury stock previously purchased for a price of $15 per share and sold for $18 per share.
2.Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1
Record the issuance of 58,000 shares of common stock with a par value $10 for a price of $12 per share.
2
Record the purchase of 1,800 shares of previously issued common stock for a price of $15 per share.
3
Record the re-issuance of 900 shares of treasury stock previously purchased for a price of $15 per share and sold for $18 per share.
Explanation / Answer
Journal entry :
Date accounts & expalantion debit credit Cash (58000*12) 696000 Common Stock 580000 Paid in capital in excess of par value-Common Stock 116000 (To record issue common stock) Treasury stock (1800*15) 27000 Cash 27000 (To record purchase treasury stock) Cash (900*18) 16200 Treasury stock (900*15) 13500 Paid in capital from sale of treasury stock 2700 (TO record sale of treasury stock)