Problem 2. Corporations. JOURNALIZE THE FOLLOWING ENTRIES DELTA Corporation was

Question

Problem 2. Corporations. JOURNALIZE THE FOLLOWING ENTRIES DELTA Corporation was organized on January 30, 2012 with an authorization of 200,000 share of $20. 30 points par common stock The following selected transactions were completed during the first year of operations. Jan 30. Issued 10,000 shares of common stock at par for cash. Feb 2. Issued 20,000 shares at the market price of $25 Feb 16. Land for $100,000, paying $50,000 in cash and issuing 2,000 shares of Common stock for the balance of the equipment. Mar. 5 Purchased 2,000 shares of treasury stock at $30. April 10. Sold s00 shares of treasury stock at $35 ril 29 Sold 1,000 shares of treasury stock at $31 Ap May 1. May 31, Dividends declared May 1, were paid. A cash dividend of $3 per share was declared. June 30, Declared a 4% stock dividend on the common stock outstanding (the fair m Value of the stock to be issued is $28). Aug. 6. Issued the certificates for the common stock dividend declared on June 30h

Explanation / Answer

DELTA CORPORATION General journal for the year 2012 Date Account Title Debit Credit Jan.30 Cash 200000 Common stock 200000 (To record issue of 10,000 shares of commo stock) Feb.2 Cash 500000 Common stock 400000 Additional paid-in-capital - Common stock 100000 (To record issue of 20,000 shares of common stock) Feb.16 Land 100000 Cash 50000 Common stock 40000 Additional paid-in-capital - Common stock 10000 (To record purchase of land for cash 50,000 and    issue of 2,000 shares of common stock) Mar.5 Treasury stock 60000 Cash 60000 (To record purchase of 2,000 shares of treasury stock) April.10 Cash 17500 Treasury stock 15000 Additional paid-in-capital - treasury stock 2500 (To record reissue of 500 shares of treasury stock @$35) April.29 Cash 31000 Treasury stock 30000 Additional paid-in-capital - treasury stock 1000 (To record reissue of 1,000 shares of treasury stock @$31) May.1 Dividend 94500 Dividend payable 94500 (To record declaration of dividend @$3 per share on 31,500 shares) May.31 Dividend payable 94500 Cash 94500 (To record payment of cash dividend declared on May 1) June.30 Dividend 35280 Stock dividend distrubutable 35280 (To record 4% stock dividend on 31,500 shares @$28 per share declared) Aug.6 Stock dividend distrubutable 35280 Common stock 25200 Additional paid-in-capital - Common stock 10080 (To record issue of 1,260 shares for stock dividend declared on June 30)

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