Question

Debit Credit Mar. 4: Issued 20,000 shares of $1 par value common stock at $9 per share. Date Accounts and Explanation Mar. 4 Cash Common Stock-$1 Par Value Paid In Capital in Excess of Par-Common 180,000 20,000 160,000 Issued common stock for cash. May 22: Purchased 1,200 shares of treasury stock-common at $11 per share. Date Accounts and Explanation May 22 Treasury Stock-Common Cash Debit Credit 13,200 13,200 Purchased treasury stock. Credit Sep. 22: Sold 600 shares of treasury stock-common at $19 per share. Date Accounts and Explanation Sep. 22 Treasury Stock-Common Paid-In Capital from Treasury Stock Transactions Debit 13200 Cash 11400 1800 Sold treasury stock at cost.

Answer 1

Journal entries:

Date	Account title and explanation	Debit	Credit
Mar.4	Cash [20,000 x $9]	$180,000
	Common stock [20,000 x $1]		$20,000
	Paid-in capital in excess of par-common		$160,000
	[To record issuance of common stock]
May22	Treasury stock-common [1,200 x $11]	$13,200
	Cash		$13,200
	[To record purchase of treasury stock]
Sept.22	Cash    [600 x $19]	$11,400
	Treasury stock-common   [600 x $11]		$6,600
	Paid-in capital from treasury stock		$4,800
	[To record sale of treasury stock]
Oct.14	Cash    [600 x $7]	$4,200
	Paid-in capital from treasury stock	$2,400
	Treasury stock-common   [600 x $11]		$6,600
	[To record sale of treasury stock]