Question

Great Adventures Problem 10-1 The following information applies to the questions displayed below.j Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they necd moncy to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzic first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 8% $10 par preferred, and $1 par value common. When the company began on July 1. 2018, Tony and Suzie each purchased 10,000 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during 2020, its third year of operations: Juty 2 Issue an adcdltional 100,000 shares of common stock for $15 per share. September 10 Repurchase 10,000 shares of its own common stock (i.e., treasury stock) for $18 per share November 15 Relssue 5,000 shares of treasury stock at $19 per share December 1 Declare a cash dividend on its common stock of $115,000 ($1 per share) to all stockholders of record on December 15. December 31 Pay the cash dlvidend declared on December 1 References oblem 10- Section Break Great Adventures Problem 10-1 1. Required information 10.00 points Great Adventures Problem 10-1 Part1 Required: 1. Record each of these transactions. (If no entry Is required for a transactlon/event, select "No Journal entry required" In the first account fleld.) View transaction list

Answer 1

Date	Accout Tittle	Debit $	Credit $
02-07	cash   [100000*15]	1500000
	common stock   [100000*1]		100000
	paid in capital in excess of par -common stock		1400000
10-09	Treasury stock	180000
	cash    [10000*18]		180000
15-11	cash    [5000*19]	95000
	Treasury stock [ 5000*18]		90000
	Paid in capital in excess of cost-treasury stock		5000
1-12	Retained Earning	115000
	Dividend		115000
31-12	Dividend	115000
	Cash		115000

3. Stockholder Equity Section
common stock (10000+10000+100000)X $1	120,000
paid in capital in excess of par -common stock	1,400,000
paid in capital in excess of cost-treasury stock	5,000
Total contributed capital	1,525,000
Add:retained earning (143000+153000-115000)	181,000
Total	1,706,000
less:Treasury stock   [5000X18)	-90,000
Total stockholders equity	1,616,000