Brief Exercise 215 Patrick Corporation is authorized to issue 1,000,000 shares o
ID: 2406469 • Letter: B
Question
Brief Exercise 215 Patrick Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2016, the company has the following stock transactions. Jan. 15 Issued 700,000 shares of stock at $7 per share Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 20, payable January 3, 2017. Journalize the transactions for Patrick Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. R required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15 Sept. 5 Dec. 6 YExplanation / Answer
Answer
Date
Accounts title
Debit
Credit
Working
15-Jan-16
Cash
$ 4,900,000.00
[700,000 shares x $ 7 per share]
Common Stock
$ 700,000.00
[700,000 shares x $ 1 per share PAR]
Paid in Capital in excess of Par - Common Stock
$ 4,200,000.00
[700,000 shares x $ 6 per share]
(Common stock issued)
05-Sep-16
Treasury Stock
$ 160,000.00
[20,000 shares x $ 8 per share]
Cash
$ 160,000.00
[20,000 shares x $ 8 per share]
(shares re-acquired as treasury stock)
06-Dec-16
Dividends
$ 340,000.00
[700,000 shares - 20,000 shares] x $ 0.50 per share
Dividend payable
$ 340,000.00
(cash dividend declared)
Date
Accounts title
Debit
Credit
Working
15-Jan-16
Cash
$ 4,900,000.00
[700,000 shares x $ 7 per share]
Common Stock
$ 700,000.00
[700,000 shares x $ 1 per share PAR]
Paid in Capital in excess of Par - Common Stock
$ 4,200,000.00
[700,000 shares x $ 6 per share]
(Common stock issued)
05-Sep-16
Treasury Stock
$ 160,000.00
[20,000 shares x $ 8 per share]
Cash
$ 160,000.00
[20,000 shares x $ 8 per share]
(shares re-acquired as treasury stock)
06-Dec-16
Dividends
$ 340,000.00
[700,000 shares - 20,000 shares] x $ 0.50 per share
Dividend payable
$ 340,000.00
(cash dividend declared)
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