Question

On January 2, 2016, Alpha Corporation issued 15,000 shares 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, Alpha reissued 500 shares of treasury stock at the going market rate of $22 per share. Use this information to prepare the General Journal entry (without explanation) for September 1. 0 of ▼ Bly Format General Journal: Debit Credit Date Accounts

Answer 1

	Journal entries in the book of Alpha Corporation
January 2,2016	Cash A/c    (15000* $15)	$225,000
	Common stock A/c     (15000* $10)		$150,000
	paid in capital in excess of par -common stock A/c (15000* $5)		$75,000
	(Being common stock issued for cash inexcess of par on jan 2, 2016)
March 1,2016	Treasury Stock A/c	$20,000
	Cash A/c     (1000* $20)		$20,000
	(Being own stock purchased on mar 1,2016
September 1,2016	Cash A/c     (500* $22)	$11,000
	Treasury Stock A/c (500* $20)		$10,000
	Retained Earnings A/c (500* $2)		$1,000
	(Being treasury stock reissued for cash in excess of cost on sept 1,2016)