Additional Brief Exercise 01 Patrick Corporation is authorized to issue 1,000,00

Question

Additional Brief Exercise 01

Patrick Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2014, the company has the following stock transactions.

Journalize the transactions for Patrick Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 15 Issued 700,000 shares of stock at $7 per share. Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 20, payable January 3, 2015.

Explanation / Answer

Jan-15 Cash (700,000*$7) $ 4,900,000 Share capital (700,000*$1) $     700,000 Additional paid in capital - common stock (700,000*$6) $ 4,200,000 Sep-05 Treasury Stock (20,000*$8) $     160,000 Cash $     160,000 Dec-05 Dividend ($0.50 * (700,000-20,000) $     340,000 Dividend payable $     340,000

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