BE 158 An inexperienced accountant for Douglas Corporation made the following en

Question

BE 158 An inexperienced accountant for Douglas Corporation made the following entries July 1 Cas 180,000 Common Stock... 180,000 (Issued 25,000 shares of common stock, par value $6 per share) Sept. 1 Common Stoc. 4,000 16,000 Retained Earnings. 40,000 (Purchased 4,000 shares issued on July 1 for the treasury at $10 per share) Instructions On the basis of the explanation for each entry, prepare the entry that should have been made for the transactions. BE 159 On September 5, Borton Corporation acquired 2,500 shares of its own $1 par common stock for $23 per share. On October 15, 1,000 shares of the treasury stock is sold for $25 per share. Instructions Journalize the purchase and sale of the treasury stock assuming that the company uses the cost method BE 160 Wise Company had the following transactions. 1. Issued 5,000 shares of common stock with a stated value of $10 for $130,000. Issued 2,000 shares of $100 par preferred stock at $108 for cash. Instructions Prepare the journal entries to record the above stock transactions. 2. BE 161 On February 1, Barton Corporation issued 5,000 shares of its $20 par value preferred stock for $26 per share. Instructions Journalize the transaction. BE 162 lames Corporation has the following accounts at December 31: Common Stock, $10 par 7,000 shares and Treasury Stock--Common, 500 shares, $10,000. Prepare the balance sheet s issued. $70,000; Paid-in Capital in Excess of Par $10,000, Retained Earnings $45.000 the stockholders' equity section of $45,000

Explanation / Answer

Answer BE 158. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jul Cash    180,000.00    Common Stock    150,000.00 25,000 Shares X $6    Additional Paid in Capital      30,000.00 $180,000 - $150,000 (To record the issue of Common Stock) 1-Sep Treasury Stock      40,000.00    Cash      40,000.00 (to record the purchase of treasury stock) Answer BE 159. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 5-Sep Treasury Stock      57,500.00 2,500 Shares X $23    Cash      57,500.00 (to record the purchase of treasury stock) 15-Oct Cash      25,000.00 1,000 Shares x $25    Treasury stock      23,000.00 1,000 Shares x $23    Additional Paid in Capital - Treasury Stock        2,000.00 1,000 Shares x $2 (To record the sale of Treasury Stock Answer BE 160. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash    130,000.00    Common Stock      50,000.00 5,000 Shares X $10    Additional Paid in Capital - Common Stock      80,000.00 $130,000 - $50,000 (To record the issue of Common Stock) 2 Cash    216,000.00 2,000 Shares X $108    Preferred Stock    200,000.00 2,000 Shares X $100    Additional Paid in Capital - Pref. Stock      16,000.00 2,000 Shares X $8 (To record the issue of Common Stock) Answer BE 161. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Feb Cash    130,000.00 5,000 Shares X $26    Preferred Stock    100,000.00 5,000 Shares X $20    Additional Paid in Capital - Pref. Stock      30,000.00 5,000 Shares X $6 (To record the issue of Common Stock) Answer BE 162. JAMES CORPORATION Balance Sheet (Partial) As on Dec-31 Stockholders' Equity Paid-in Capital Common Stock - $10 par - Issued - 7,000 Shares      70,000.00 Paid in Capital in Excess of Par - Common Stock      10,000.00 Total Paid in Capital      80,000.00 Retained Earnings      45,000.00    125,000.00 Less: Treasury Stock - 500 Shares    (10,000.00) Total Shareholders' Equity    115,000.00

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