Question

PB5.

LO 14.2Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue 3,000,000 shares of $40 par value 9% preferred stock. It is also authorized to issue 3,750,000 shares of $2 par value common stock. In its fifth year, the corporation has the following transactions:

Mar. 1	Purchased 2,000 shares of its own common stock at $15 per share
Apr. 10	Reissued 1,000 shares of its common stock held in the treasury for $18 per share.
Jun. 12	Reissued 1,000 shares of common stock at $12 per share

Journalize the transactions.

Answer 1

Date	Particular	Amount Dr	Amount Cr
March 1	Common stock (2000shares * $2)	4000
	Additional paid in capital- Common stock (2000 shares * $13)	26000
	Cash (2000 shares *$15)		30000
April 10	Cash (1000 shares* $18)	18000
	Treasury Stock(1000*$2)		2000
	Additional paid in capital - treasury Stock(1000*$16)		16000
June 12	Cash(1000*$12)	12000
	Common stock (1000*$2)		2000
	Additional paid in capital- common stock (1000*$10)		10000