Problem 15B-6 (Part Level Submission) Marin Company has the following stockholde
ID: 2564405 • Letter: P
Question
Problem 15B-6 (Part Level Submission) Marin Company has the following stockholders' equity accounts at December 31, 2017. Common Stock ($100 par value, authorized 7,600 shares) $505,600 Retained Earnings 291,700 (a) Prepare entries in journal form to record the following transactions, which took place during 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (1) 290 shares of outstanding stock were purchased at $98 per share. (These are to be accounted for using the cost method.) (2) A $22 per share cash dividend was declared. (3) The dividend declared in (2) above was paid (4) The treasury shares purchased in (1) above were resold at $102 per share. (5) 550 shares of outstanding stock were purchased at $105 per share. (6) 340 of the shares purchased in (5) above were resold at $97 per share.Explanation / Answer
Answer:
No
Description
Debit $
Credit$
1
Treasury stock (290*98)
28,420
To cash
28,420
(to record the purchase of stock)
2
retained earning
114,752
To dividend Payable
114,752
( to record the declaration of dividend)
(5506-290)*$22
3
Dividend Payable
114,752
To cash
114,752
(To record the payment of dividend)
4
Cash (290*102)
29580
To treasury Stock (290*98)
28420
To paid in capital -treasury stock (290*4)
1160
( To record the resell of treasury stock)
5
Treasury stock (550*105)
57750
To cash
57750
(to record the purchase of stock)
6
Cash (340*97)
32980
Paid in capital -treasury stock
1160
Retained earnings (2720-1160)
1560
To treasury Stock (340*105)
35700
( To record the resell of treasury stock)
No
Description
Debit $
Credit$
1
Treasury stock (290*98)
28,420
To cash
28,420
(to record the purchase of stock)
2
retained earning
114,752
To dividend Payable
114,752
( to record the declaration of dividend)
(5506-290)*$22
3
Dividend Payable
114,752
To cash
114,752
(To record the payment of dividend)
4
Cash (290*102)
29580
To treasury Stock (290*98)
28420
To paid in capital -treasury stock (290*4)
1160
( To record the resell of treasury stock)
5
Treasury stock (550*105)
57750
To cash
57750
(to record the purchase of stock)
6
Cash (340*97)
32980
Paid in capital -treasury stock
1160
Retained earnings (2720-1160)
1560
To treasury Stock (340*105)
35700
( To record the resell of treasury stock)