Question

The following information applies to the questions dsplayed below/ Tony and Suhe punchased land costing $500.000 for a new camp in January 2020 Now they need money 1o build the cebins, diing faclity a ropes course, ond an ouadoor swming pool Tony and Sue r checked weh Sument Benk to see feey When the company began on July t 2018, Tony and Suze each purchased 12,500 shares of $1 par velue comon snock at St per share The ollwing teacsions affect sockholders equty during 2020. ts thrd year of operaions additional funds the camp Great July 2 Issue an addnonal 150,000 shares of common shock for $12 per share Septenber 10 T000 shares of ts own common stock etreasury stock) for $15 per share December 1 Declarec December 31 Pay the cesh dividend declared on December 1 on ts common stock of $129,500(51 per sharej to all snockholders of record on Decener

Answer 1

Journal entries
Date	Accounts title and explanations				Debit $	Credit $
2-Jul	Cash account Dr. (110000*12)				1320000
	Common Stock capital					110000
	paid in capital in excess of par					1210000
10-Sep	Treasury stock Dr.				165000
	Cassh accouont (11000*15)					165000
15-Nov	Cash account Dr. (5500*16)				88000
	Treasury stock					82500
	additiona paid in capital-Treasury					5500
1-Dec	Dividend Dr.				129500
	Dividend payable					129500
31-Dec	Dividend payable Dr.				129500
	Cash account					129500
Stockholder's equity:
135000 common stock of $ 1 par value					135000
paid in capital in excess of par-Common					1210000
Additional paid in capital-Treasury					5500
Less: Treasury stock					-82500
Total paid in capital					1268000
Add: retained earnings
Beginning balance			147000
Add: Net income			157000
Less: Dividend			-129500
Ending balanc eof Retained earnings					174500
Total stockholder's equity					1442500