Question

Question 9 (6 points) 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. Use this information to prepare the General Journal entries (without explanation) for January 2 and March 1. D oo - Format - B IV - Question 10 (6 points) 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. Format BI U

Answer 1

Question 9:

Date	Account Titles and Explanation	Debit	Credit
Jan. 2, 2016	Cash (15,000 shares * $15 per share)	$225,000
	Common Stock (15,000 shares * $10 per share)		$150,000
	Paid-in Capital in excess of Par - Common Stock ($15 - $10 = $5 * 15,000)		$75,000
	(To record the issue of common shares more than par value)
Mar. 1, 2016	Treasury Stock (1,000 shares * $20 per share)	$20,000
	Cash		$20,000
	(To record the reacquisition of common stock)

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