Question

BELLA DONNA

Please answer promptly and show all work.

Question 4 O out of 0.5 points Bella Donna Company has 100,000 shares of $3 par common stock issued and outstanding as of January 1, 2018. The shares were originally issued for $9 per share. On February 3, 2018, Bella Donna repurchased 7,360 shares at $6 per share for the purposes of retiring them. What will the debit to Common Stock on the February 3rd journal entry?

Answer 1

fix date ВЗ В C D E F 1 following journal entries shall be made- 2 date account titles and explanation debit credit 4 01 January 2018 cash $900,000 5 $300,000 6 common stock $600,000 additional paid in capital-common stock 7 (issue of common stock recorded) 03 February 2018 treasury stock $44,160 10 $44,160 11 cash (issue of treasury stock recorded) 12 13 03 February 2018 common stock $22,080 14 additional paid in capital-common stock $44,160 15 $44,160 treasury stock retained earnings 16 $22,080 17 (retirement of common stock recorded) 18 19 20 so, from the above entries, common stock has been debited with $22,080 on the February 3rd journal entry. 21 22 debit to common stock shall be $22,080 23 correct answer 24

for formulas and calculations, refer to the image below -

date B3 В А C E F 1 following journal entries shall be made- 2 3 date account titles and explanation debit credit 4 cash - 100000*9 43101 5 - 100000*3 6 common stock = 100000*6 additional paid in capital-common stock 7 (issue of common stock recorded) 8 43134 = 7360*6 10 treasury stock ED10 cash 11 (issue of treasury stock recorded) 12 13 43134 7360*3 14 common stock additional paid in capital-common stock - 7360*6 15 treasury stock retained earnings = 7360*6 16 -D14 D15-E16 17 (retirement of common stock recorded) 18 19 20 so, from the above entries, common stock has been debited with $22,080 on the February 3rd journal entry. 21 22 debit to common stock shall be $22,080 correct answer 23 24 nLON co

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