Question

Exercise 15-6 Monty Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2017, Monty took part in the following selected transactions. 1. Issued 5,100 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $6,800. 2. Issued 1,100 shares of stock for land appraised at $53,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance. 3. Purchased 480 shares of treasury stock at $41 per share. The treasury shares purchased were issued in 2013 at $38 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c) Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solution Transcation Debit Credit 243100 General Journal cash (5100 shares x 49 - Issue cost 6800] Common stock [ 5100 shoores y 5 par ] Additional paid an capital . (Bality) 25500 217600 53000 5500 Land (Appraised voelwe) Common stock [1100 x 5) Additional paid in capital Balety] 47500 19680 Treasury Stock [ 480 shares X41 ] cash 19680 18240 cash (480 Shares X 38) Retained earnings (Balify) 1440 Treasury stock (480 shares X41] 19680