1) Trevor Track Co. issues 5,000 shares of $1.50 par value common stock for $9 p
ID: 2528716 • Letter: 1
Question
1) Trevor Track Co. issues 5,000 shares of $1.50 par value common stock for $9 per share. + a. What is the journal entry to record this transaction (You may or may not need all rows of this textbox). b. Trevor Track Co. repurchases 250 of its own common shares for Treasury for $5.75 per share. What is the journal entry to record this transaction? (You may or may not need all rows of this textbox). c. Assuming the above transactions represent all of the common stock activity of Trevor Track Co., how many common shares are issued? d. Assuming the above transactions represent all of the common stock activity of Trevor Track Co., how many common shares are in treasury? e. Assuming the above transactions represent all of the common stock activity of Trevor Track Co., how many common shares are outstanding? 2) On Nov. 1, 2017, the board of directors of Disney Claire Inc. declared a $7.00 per share cash dividend on 90,000 shares of $1 par value common stock. The dividend will be paid to stockholders' who own shares on Dec. 29, 2017. The dividend will be paid on Feb. 14, 2018. What journal entry, if any, is required on each of the following dates?+ a. Nov. 1, 2017 b. Dec. 29, 2017 c. Feb. 14, 2018+Explanation / Answer
Solution 1 - a&b
Solution 1c:
Nos of common share issued = 5000 shares
Solution 1d:
Nos of common shares in treasury = 250 shares
Solution 1e:
Nos of common share outstanding = 5000 shares - 250 shares = 4750 shares
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Journal Entries - Trevor Track Co Event Particulars Debit Credit a Cash Dr $45,000.00 To Common Stock $7,500.00 To Paid in capital in excess of par - common stock $37,500.00 (To record issue of common stock) b Treasury stock Dr $1,437.50 To Cash $1,437.50 (To record purchase of own shares)Related Questions
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