2)Record the Journal entries of the following events related to the Springer Com

Question

2)Record the Journal entries of the following events related to the Springer Company (a newly formed corporation). The events are NOT independent of each other.

A.) Jan 2, 2016: Southwestern issued 20 million shares of its $1 par common stock for $6.

B.)March 17, 2016: Reacquired 5 million shares of treasury stock at $10

C.) May 17,2016: Resold 3 million treasury shares at $14.

D.)July 17, 2016: Resold 1 million treasury sales at $8.

E.) December 31, 2016: Declared a cash dividend of $0.50 for all outstanding common shares.

F.) Springer Company reported 2016 Net Income of $200,000. Prepare the shareholder's equity section of their 2016 balance sheet.

Explanation / Answer

2.

Bank A/C Dr 120000000

To Share Capital A/C 20000000

To Premium on Share capital A/C 100000000

Share capital A/C Dr 30000000

Loss on repurchase A/C 20000000

To Bank A/C 50000000

C.May 17 ,2016

Share capital A/C Dr 18000000

Loss on repurchase A/C 24000000

To Bank A/C 42000000

Share capital A/C Dr 6000000

Loss on repurchase A/C 2000000

To Bank A/C 8000000

   To Proposed Dividend A/C 5500000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

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