Exercise 15-6 Metlock Corporation is authorized to issue 49,000 shares of $5 par

Question

Exercise 15-6 Metlock Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2017, Metlock took part in the following selected transactions. 1. Issued 4,900 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $9,000. 2. Issued 1,100 shares of stock for land appraised at $49,000. The stock was iely traded on a national stock exchange at approximately $46 per share on the date of issuance 3. Purchased 510 shares of treasury stock at S44 per share. The treasury shares purchased were issued in 2013 at $41 per share (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit

Explanation / Answer

a Cash 211500 =(4900*45)-9000      Common stock 24500 =4900*5      Paid in capital in excess of par-Common stock 187000 b Land 50600 =1100*46      Common stock 5500 =1100*5      Paid in capital in excess of par-Common stock 45100 c Treasury stock 22440 =510*44         Cash 22440

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