record the transactions stated. Accounting Principles Final, Ch 8, 10, 11 D Faye

Question

record the transactions stated. Accounting Principles Final, Ch 8, 10, 11 D Fayez Corp. has the following transactions: a) 1/1/1999 Beginning Balance 90,000 shares common stock outstanding, at b) 4/1/1999 Issued 14,900 shares of common stock for a total of $75,000 a par value of $3.80 c) 6/1/1999 Purchased 6,000 shares of its own common stock at $8.25 per d) 8/1/99 Sold 1,500 shares of common stock previously purchased at $ 11 e) 10/1/99 Sold 2,000 shares of common stock previously purchased at $7 f) 11/20/1999 The Board declared a 10% stock dividend for-Stockholders as share in addition to $800 commission per share per share of 12/31/99·The market value of the stock at the declaration date was $10 (use weighted average) to be paid on January 31, 2000 g) 1/31/2000 Declared and paid the full year's dividend of $0.20 per share on common stock outstanding. h) The stock dividend was issued on 1/31/2000 Instructions a) Journalize the above transaction

Explanation / Answer

A Cash 342000 (90000*3.8) common stock 342000 B cash 75000 common stock 56620 (14900*3.8) paid-in capital excess of par - common stock 18380 (75000-56620) C Treasury stock, common 49500 cash 49500 D cash 16500 (1500*11) treasury stock, common 12375 (1500*8.25) paid-in capital excess of par - treasury stock 4125 (1500*2.75) E cash 14000 (2000*7) paid-in capital excess of par - treasury stock 2500 (2000*1.25) treasury stock, common 16500 (2000*8.25) F no entry G dividends payable 22528 ((90000+14900-6000+1500+2000)+(((90000+14900-6000+1500+2000)*10%)))*0.2 cash 22528 H dividends payable 102400 (((90000+14900-6000+1500+2000)*10%)))*10 common stock 38912 (((90000+14900-6000+1500+2000)*10%))*3.8 paid-in capital excess of par - common stock 63488 (102400-38912)

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