On January 1ABC Com pany began operations by issuing 10,000 shares of $1 par val
ID: 2581485 • Letter: O
Question
On January 1ABC Com pany began operations by issuing 10,000 shares of $1 par value stock for per share. On June 30th they declared a $0.10 per share dividend to shareholders of record on July 15th, payable July 30th. On October 1st, they declared a 10% stock dividend to areholders of record on October 15th pavable on November 1t Market price per share was $15 on October 1, $17 per share on October 15, and $20 per share on November 1. Prepare all journal entries for the above transactions oblem 12-6 On January 1, 2016, Acme Company had 100,000 shares of $10 par stock outstanding which it originally issued for $15 per share. On April 30th it bought back 2,000 shares at $27 per share. On October 1, Acme Company sold 500 shares of the Treasury Stock on the open market at $30 per share. On November 30th the Company sold 1,000 shares of Treasury Stock at $25 per share. On December 31, Acme sold the last 500 shares for $35 per share. At December 31, 2016, the Retained Earnings was $450,000. Prepare journal entries for the treasury stock transactions and st the treasury stock T-accounts.Explanation / Answer
Journal entries :
T account :
Date accounts & explanation debit credit Apr 30 Treasury stock a/c (2000*27) 54000 Cash a/c 54000 Oct 1 Cash a/c (500*30) 15000 Treasury stock a/c (500*27) 13500 Paid in capital from sale of treasury stock (500*3) 1500 Nov 30 Cash a/c (1000*25) 25000 Paid in capital from sale of treasury stock 1500 Retained earnings a/c 500 Treasury stock a/c (1000*27) 27000 Dec 31 Cash a/c (500*35) 17500 Treasury stock a/c (500*27) 13500 Paid in capital from sale of treasury stock (500*8) 4000