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ID: 2599708 • Letter: #
Question
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during 20XX transaction:
Jan 2. $10 per share for a 1000 shares of com. stock were issued. -- Feb 16. $8 per share for a 2000 share com.stock issued. -- Mar. 1 a $0.20 per share cash dividened declared, dated to be paid on Mar. 30. date record is Mar. 16. -- Mar. 30 paid cash div -- Nov 2. Company annocunced 1% dividend on every com.stock outstanding. Current market val was $8 per share on this date. Date or record Nov.15 -- Dec.2 Company bought back 5000 shares of thier own at $12 per share. --Dec. 21. The company sold treasury stock 300 shares at $14 per share.
record entries.
Balance sheet for company for 12/31/20XX shows the following: Com. Stock; $1 par value;11000000 shares authorized,8000000 shares issued outstanding $8,000,000 Paid-in excess par value 200,000 Retain earns 800,000,000Explanation / Answer
In the books of ......
Date Account Titles Debit Credit 20XX $ $ Jan 2 Cash ( 1,000 x $ 10) 10,000 Common Stock ( 1,000 x $ 1) 1,000 Paid-in Capital in Excess of Par : Common Stock 9,000 Feb 16 Cash ( 2,000 x $ 8) 16,000 Common Stock ( 2,000 x $ 1) 2,000 Paid-in Capital in Excess of Par : Common Stock 14,000 Mar 1 Retained Earnings ( 8,000,000+ 1,000+ 2,000) shares x $ 0.20 1,600,600 Dividends Payable : Common Stock 1,600,600 Mar 30 Dividends Payable : Common Stock 1,600,600 Cash 1,600,600 Nov 2 Retained Earnings ( 80,030 shares x $ 8) 640,240 Common Stock Dividend Distributable 80,030 Paid-in Capital in Excess of Par : Common Stock 560,210 Nov 15 Common Stock Dividend Distributable 80,030 Common Stock 80,030 Dec 2 Treasury Stock 60,000 Cash 60,000 Dec 21 Cash ( 300 x $ 14) 4,200 Treasury Stock ( 300 x $ 12) 3,600 Additional Paid-in Capital : Treasury Stock 600Related Questions
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