Question

Stock transactions for Mr. Magoo Driving School, Inc. follow. (Click the icon to view the transactions.) Journalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Mar. 4: Issued 23,000 shares of $1 par value common stock at $12 per share. Date Accounts and Explanation Debit Credit Mar. 4

Answer 1

Date	Account title and explanation	Debit	Credit
Mar. 4	Cash (23,000 x $12)	276,000
	Common stock (23,000 x $1)		23,000
	Paid in capital in excess of par-Common stock		253,000
	(To record the issuance of common stock)
May. 22	Treasury stock(1,400 x $13)	18,200
	Cash		18,200
	(To record the purchase of treasury stock)
Sept. 22	Cash (700 x $19)	13,300
	Treasury stock (700x$13)		9,100
	Paid in capital from treasury stock		4,200
	(To record the sale of 700 shares of treasury stock above the cost)
Oct. 14	Cash (700 x $12)	8,400
	Paid in capital from treasury stock	700
	Treasury stock (700x$13)		9,100
	(To record the sale of 700 shares of treasury stock below the cost)