Question

Help Save & Eu Check my A company designs and produces a line of golf equipment and golf apparel. The company has 100,000 shares of common stock outstanding as of the beginning of Year 1. The company has the following transactions affecting stockholders' equity in Year 1 March 1 Issues 46,000 additional shares of $1 par value common stock for 543 per share May 10 Purchases 4.100 shares of treasury stock for $46 per share. June 1 Declares a cash dividend of $1.05 per share to all stockholders of record on June 15. (Hint: Dividends are not paid on treasury stock.) July 1 Pays the cash dividend declared on June 1. October 21 Resells 2,650 shares of treasury stock purchased on May 10 for $51 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction ist Journal entry worksheet Record the issuance of 46,000 additional shares of si par value common stock for 543 per share Prex Nod 7 0 o te e to search

Answer 1

	DATE	ACCOUNT TITLES AND EXPLANATIONS	DEBIT	CREDIT
	March,1	Cash	$1,978,000		(46000*43)
		Common Stock		$46,000	(46000*1)
		Additional Paid in Capital-Common Stock		$1,932,000	(1978000-46000)
		(To record issue of 46000 shares at $43 each)
	May,10	Treasury Stock	$188,600		(4100*46)
		Cash		$188,600
		(To record purchase of 4100 Treasury shares at $46 each)
	June,1	Retained Earnings	$148,995		$1.05*(100000+46000-4100)
		Dividend Payable		$148,995
		( To record declaration of dividend of $1.05 per share)
	July,1	Dividend Payable	$148,995
		Cash		$148,995
		(To record payment of cash dividend)
	October,21	Cash	$104,550		(2050*51)
		Treasury Stock		$94,300	(2050*46)
		Additional paid in capital-Treasury Stock		$10,250	(104550-94300)
		(To record Sale of 2050 Treasury Stock at $51 per share)