Part 2 Rodriguez Corporation issues 12,000 shares of its common stock for $228,0
ID: 2601860 • Letter: P
Question
Part 2
Rodriguez Corporation issues 12,000 shares of its common stock for $228,000 cash on February 20. Prepare journal entries to record this event under each of the following separate situations 1. The stock has a $16 par value. 2. The stock has neither par nor stated value. 3. The stock has a $8 stated value Transaction General journal Debit Credit Record the issue of 12,000 shares of $16 par value common stock for $228,000 cash. Record the issue of 12,000 shares of no-par, no-stated value common stock for $228,000 cash Record the issue of 12,000 shares of $8 stated value common stock for $228,000 cash. 1. 2. 3.
Explanation / Answer
RODRIGUEZ : JOURNALS FOR SHARE TRANSACTIONS
FEB 20TH
DETAILS
AMOUNT
$
DEBIT A/C
CREDIT
A/C
1
ISSUE OF 12,000 SHARES FOR $228,000
228,000
CASH
36000
EXCESS OF PAR A/C
192,000
COMMON STOCK
2
STOCK HAS NEITHER PAR OR STATED VALUE
228,000
CASH
COMMON STOCK
3
STOCK HAS STATED VALUE $8
228,000
CASH
96,000
EXCESS OF PAR A/C
132,000
COMMON STOCK
1
KOHLER : JOURNALS FOR SHARE TRANSACTIONS
DATE
2017
DETAILS
AMOUNT
$
DEBIT A/C
CREDIT
A/C
JAN 1
PURCHASED 6,000 SHARE OWN STOCK $15
90,000
CASH
60,000
COMMON STOCK
30,000
EXCESS OF PAR
JAN 5
DECLARED DIVIDEND ON 54,000 SHARES @ $6 PER SHARE
324,000
DIVIDENDS
DIVIDENDS PAYABLE
FEB 28
PAID DIVIDEND
324,000
DIVIDENDS PAYABLE
CASH
JULY 6
SOLD TREASURY SHARES 2,250 @ $19
42,750
CASH
22500
COMMON STOCK
20,250
EXCESS OF PAR
AUG 22
SOLD TREASURY SHARES 3750 @ $ 12
45,000
CASH
37500
COMMON STOCK
7500
EXCESS OF PAR
SEP 5
DECLARED DIVIDEND ON 60,000 SHARES @ $ 6
360,000
DIVIDENDS
DIVIDENDS PAYABLE
OCT 28
PAID DIVIDENDS
360,000
DIVIDENDS PAYABLE
CASH
DEC 31
TRANSFERRED INCOME FOR YEAR TO RETAINED EARNINGS
388,000
INCOME STATEMENT
RETAINED EARNINGS
2
STATEMENT OF RETAINED EARNINGS DEC 31, 2017
BALANCE AS AT 1 JAN 2017
400,000
INCOME FOR YEAR
388,000
LESS: DIVIDENDS PAID DURING YEAR
-324,000
-360,000
BALANCE AS AT 31 DEC 2017
104,000
3
STOCKHOLDERS EQUITY SECTION AS AT 31 DEC 2017
COMMON STOCK $10 PAR VALUE , 100000 SHARES AUTHORIZED
60,000 SHARES ISSUED AND OUTSTANDING
$600,000
PAID IN CAPITAL, IN EXCESS OF PAR VALUE, COMMON STOCK
77,750
RETAINED EARNINGS
104,000
TOTAL STOCKHOLDERS’ EQUITY
781,750
RODRIGUEZ : JOURNALS FOR SHARE TRANSACTIONS
FEB 20TH
DETAILS
AMOUNT
$
DEBIT A/C
CREDIT
A/C
1
ISSUE OF 12,000 SHARES FOR $228,000
228,000
CASH
36000
EXCESS OF PAR A/C
192,000
COMMON STOCK
2
STOCK HAS NEITHER PAR OR STATED VALUE
228,000
CASH
COMMON STOCK
3
STOCK HAS STATED VALUE $8
228,000
CASH
96,000
EXCESS OF PAR A/C
132,000
COMMON STOCK
1
KOHLER : JOURNALS FOR SHARE TRANSACTIONS
DATE
2017
DETAILS
AMOUNT
$
DEBIT A/C
CREDIT
A/C
JAN 1
PURCHASED 6,000 SHARE OWN STOCK $15
90,000
CASH
60,000
COMMON STOCK
30,000
EXCESS OF PAR
JAN 5
DECLARED DIVIDEND ON 54,000 SHARES @ $6 PER SHARE
324,000
DIVIDENDS
DIVIDENDS PAYABLE
FEB 28
PAID DIVIDEND
324,000
DIVIDENDS PAYABLE
CASH
JULY 6
SOLD TREASURY SHARES 2,250 @ $19
42,750
CASH
22500
COMMON STOCK
20,250
EXCESS OF PAR
AUG 22
SOLD TREASURY SHARES 3750 @ $ 12
45,000
CASH
37500
COMMON STOCK
7500
EXCESS OF PAR
SEP 5
DECLARED DIVIDEND ON 60,000 SHARES @ $ 6
360,000
DIVIDENDS
DIVIDENDS PAYABLE
OCT 28
PAID DIVIDENDS
360,000
DIVIDENDS PAYABLE
CASH
DEC 31
TRANSFERRED INCOME FOR YEAR TO RETAINED EARNINGS
388,000
INCOME STATEMENT
RETAINED EARNINGS
2
STATEMENT OF RETAINED EARNINGS DEC 31, 2017
BALANCE AS AT 1 JAN 2017
400,000
INCOME FOR YEAR
388,000
LESS: DIVIDENDS PAID DURING YEAR
-324,000
-360,000
BALANCE AS AT 31 DEC 2017
104,000
3
STOCKHOLDERS EQUITY SECTION AS AT 31 DEC 2017
COMMON STOCK $10 PAR VALUE , 100000 SHARES AUTHORIZED
60,000 SHARES ISSUED AND OUTSTANDING
$600,000
PAID IN CAPITAL, IN EXCESS OF PAR VALUE, COMMON STOCK
77,750
RETAINED EARNINGS
104,000
TOTAL STOCKHOLDERS’ EQUITY
781,750