During the current year, Waters Corporation completed the following transactions
ID: 2459859 • Letter: D
Question
During the current year, Waters Corporation completed the following transactions:
Jan 1:
Issued 10,000 shares of $2 par common stock for $20 per share.
Jan 10:
Issued 2,000 shares of $50 par, 6% preferred stock for $120,000.
Jan 31:
Purchased 1,000 shares of treasury stock (common stock) for $30 per share
Feb 15:
Sold 500 shares of Treasury stock for $32 per share
Mar 15:
Purchased and retired 1,000 shares of common stock for $25 per share
April 1:
Declared a 10% stock dividend (100,000 shares are issued and outstanding) when the stock price is $30 per share. The shares will be distributed on May 1.
May 1:
Distributed the shares of common stock from the April 1 stock dividend.
Record the Journal Enteries?
Jan 1:
Issued 10,000 shares of $2 par common stock for $20 per share.
Jan 10:
Issued 2,000 shares of $50 par, 6% preferred stock for $120,000.
Jan 31:
Purchased 1,000 shares of treasury stock (common stock) for $30 per share
Feb 15:
Sold 500 shares of Treasury stock for $32 per share
Mar 15:
Purchased and retired 1,000 shares of common stock for $25 per share
April 1:
Declared a 10% stock dividend (100,000 shares are issued and outstanding) when the stock price is $30 per share. The shares will be distributed on May 1.
May 1:
Distributed the shares of common stock from the April 1 stock dividend.
Explanation / Answer
Bank a/c. Dr. 200000
Share capital a /c. 20000
Premium a/c. 180000
Bank. A/c. Dr. 120000
Share capital a/c. 100000
Share premium a/c. 20000
Treasury stock a/c. Dr 30000
Bank. A/c. 30000
Bank. A/c. Dr. 16000
Treasury stock a/c. 16000
E share capital a/c. Dr 25000
Bank a/c. 25000
Dividend a/c. Dr. 300000
Bank. A/c. 300000
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