1) Issues 57,000 additional shares of $1 par value common stock for $54 per shar

Question

1)

Issues 57,000 additional shares of $1 par value common stock for $54 per share. Record the transaction.

2)

Repurchases 5,200 shares of treasury stock for $57 per share. Record the transaction.

3)

Declares a cash dividend of $1.60 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) Record the transaction.

4)

Pays the cash dividend declared on June 1. Record the transaction.

5)

Reissues 2,600 shares of treasury stock purchased on May 10 for $62 per share. Record the transaction.

Dates:
march 01,2015
may 10, 2015
june 01,2015
july 01,2015
october 01, 2015

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common stock outstanding as of the beginning of 2015. Power Drive has the following transactions affecting stockholders' equity in 2015 Issues 57,000 additional shares of $1 par value common stock for $54 per share Repurchases 5,200 shares of treasury stock for $57 per share Declares a cash dividend of $1.60 per share to all stockholders of record on June 15 (Hint: Dividends are not paid on treasury stock.) Pays the cash dividend declared on June 1 Reissues 2,600 shares of treasury stock purchased on May 10 for $62 per share March May June 1 10 1 1 21 October Required: Record each of these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 133 Issues 57,000 additional shares of $1 par value common stock for $54 per share. Record the transaction. Date March 01,2015 General Journal Debit Credit Enter debits before credits clear entry record entry

Explanation / Answer

Date Account Title & Explaination Debit credit march 01,2015 Cash 3078000 Common Stock 57000 Additional Paid in Capital 3021000 may 10, 2015 Treasury stock 296400 Cash 296400 June 1 Retained Earning (100000+57000-5200)*1.60 242880 Dividend Payable 242880 july 01,2015 Dividend Payable 242880 Cash 242880 october 01, 2015 Cash 161200 Additional Paid in Capital 13000 Treasury stock 148200

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

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