Question 10
On January 2, 2016, Alpha Corporation issued 15,000shares of $10 par value common stock for $15 per share. On March 1,2016, Alpha reacquired 1,000 of these shares when they were trading$20 each. September 1, 2016, when the market was soaring, Alphareissued 500 shares of treasury stock at the going market rate of$25 per share. Use this information to prepare the General Journalentry (without explanation) for September 1
Question 10
On January 2, 2016, Alpha Corporation issued 15,000shares of $10 par value common stock for $15 per share. On March 1,2016, Alpha reacquired 1,000 of these shares when they were trading$20 each. September 1, 2016, when the market was soaring, Alphareissued 500 shares of treasury stock at the going market rate of$25 per share. Use this information to prepare the General Journalentry (without explanation) for September 1
Related questions
Salisbury Corporation formed a corporation on January 3, 2016,and is authorized to issue 500,000 shares of $10 par value commonstock. The company has the following stock transactions.
| 1/10/2016 â Issued 200,000 shares of stock at $16 per share. 1/25/2016 â The law firm that helped the company incorporate andfile all forms for the stock issue accepts 1,000 shares of newlyissued stock in lieu of cash for its legal bill rendered. Theamount of the legal bill was $20,000. 6/10/2016 â Salisbury Corporation declares a 50 cent per sharedividend payable July 15 to shareholders of record as of June 30,2016. 6/30/2016 â The record date for the dividend declared on June10. 7/15/2016 â The dividend declared on June 10 is paid. 9/15/2016 â Salisbury Corporation declares a 10% stock dividendpayable on September 30 to shareholders of record as of September20. The market value of the stock was $15 immediately prior to thedeclaration of the stock dividend. 9/30/2016 â The stock dividend declared on September 15 ispaid. 10/15/2016 â Salisbury Corporation buys 5,000 shares of its ownstock on the open market for $18 per share. 12/18/2016 â Salisbury Corporation resells 2,000 shares of thetreasury stock for $20 per share. |
Answer sheet
DATE | ACCOUNT TITLE | DEBIT | CREDIT |
On January 2, 2015, ABC Co. was authorized to issue 300,000shares of common stock, par value $10 per share and 50,000 sharesof 6% Preferred stock, par value $100 per share. Record thefollowing events for 2015:
1. Issued 100,000 shares of common stock at $15 per share.
Debit Credit
2. Issued 11,000 shares of preferred stock at $105 pershare.
Debit Credit
3. Reacquired 2,000 shares of common stock at $18 per share.
Debit Credit
4. Reissued 500 shares of treasury stock for $10,000.
Debit Credit
5. Declared the annual cash dividend on the preferred stock anda $1 per share dividend on the
common stock. This will be paid the followingyear.
Debit Credit
