Record the following journal entries for ABC, Inc. January, 1st 2011: Issued 10,

Question

Record the following journal entries for ABC, Inc. January, 1st 2011: Issued 10,000 shares of $1 par value stock for $20 per share. April 1st, 2011: Reacquired 1,000 shares of stock at $22 per share. June 1st, 2011: Reissues 1,000 shares of stock at $25 per share. August 1st, 2011: Declares a dividend of $1 per share. September 1st, 2011: Pays dividend to shareholders. 1. Which of the following journal entries records the issuances of shares on January 1st? a. Dr-Cash $200k; Cr APIC- $20k; Cr Common Stock $180k b. Dr-Cash $200k; Cr APIC- $180k; Cr Common Stock $20k c. Dr-Cash $200k; Cr APIC- $190k; Cr Common Stock $10k d. Dr-Cash $200k; Cr APIC- $10k; Cr Common Stock $190k 2. Which of the following journal entries records the reacquiring of shares on April 1st? a. Dr Common Stock $22,000; Cr. Cash $22,000 b. Dr Treasury Stock $22,000; Cr. Cash $22,000 c. Cr Treasury Stock $22,000; Dr. Cash $22,000 d. Dr Cash $22,000; Cr. Common Stock $22,000 3. Which of the following journal entries records the reissuances of shares on June 1st? a. Dr Cash $25,000; Cr APIC $22,000; Cr. Treasury Stock $3,000 b. Dr Cash $25,000; Cr APIC $3000; Cr. Treasury Stock $22,000 c. Dr Cash $22,000; Cr. Treasury Stock $22,000 d. Dr Cash $25,000; Cr APIC $3000; Cr. Common Stock $22,000 4. Which of the following journal entries records the declaration of the dividend on August 1st? a. Dr- Retained Earnings $10k; Cr. Dividends Payable $10k b. Dr- Retained Earnings $9k; Cr. Dividends Payable $9k c. Dr- Dividends Payable $9k; Cr. Retained Earnings $9k d. Dr- Dividends Payable $10k; Cr. Retained Earnings $10k 5. Which of the following journal entries records the payment of the dividend on September 1st? a. Dr- Retained Earnings $9k; Cr. Cash $9k b. Dr- Retained Earnings $10k; Cr. Cash $10k c. Dr- Dividends Payable $10k; Cr. Cash$10k d. Dr- Dividends Payable $9k; Cr. Cash$9k

Explanation / Answer

a. Dr- Retained Earnings $9k; Cr. Cash $9k

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.