Date Account Titles and Explanation Debit Credit Jan. 13, 2014 Apr. 15, 2014 May

Question

Date

Account Titles and Explanation

Debit

Credit

Jan. 13, 2014

Apr. 15, 2014

May 15, 2014

Nov. 15, 2014

Dec. 31, 2014

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SHOW LIST OF ACCOUNTS

On January 1, 2014, Agassi Corporation had the following stockholders’ equity accounts.
Common Stock ($10 par value, 65,000 shares issued and outstanding) $650,000 Paid-in Capital in Excess of Par—Common Stock 480,000 Retained Earnings 635,000
During 2014, the following transactions occurred.
Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders. Apr. 15 Declared and paid a 10% stock dividend. The market price of the stock was $14 per share. May 15 Reacquired 2,200 common shares at a market price of $16 per share. Nov. 15 Reissued 1,100 shares held in treasury at a price of $19 per share. Dec. 31 Determined that net income for the year was $376,000.

Explanation / Answer

Solution:

Date Journal Debit Credit Jan-15 Retained Earnings 68,250 Dividend Payable 68,250 Dividend Payable 68,250 Cash 68,250 Apr-15 Retained Earnings 91,000 Dividend Payable 65,000 Additional Paid in Capital 26,000 Dividend Payable 65,000 Common Stock 65,000 May-15 Treasury Stock 35,200 Cash 35,200 Nov-15 Cash 20,900 Treasury Stock 17,600 Additional Paid in capital 3,300 Dec-31 Profit and Loss account 376,000 Retained Earnings 376,000

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