Recording issuances of common stock-treasury stock

Reference no: EM1363506

During the first year of operation, Sitwell Corporation had the following transaction pertaining to its common stock.

Jan 10 Issued 80,000 shares for cash at $8 per share

Mar 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate.

July 1 Issued 30,000 shares for cash at $8 per share.

Sept 1 Issued 60,000 shares for cash at $10 per share.

INSTRUCTION

a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $3 per share.

b) Prepare the journal entries for these transactions, assuming that the common stock is on-par with a stated value of $2 per share.

Before Gordon Corporation engages in the treasury stock transaction listed below, in general the ledger reflects, among others, the following account balances (par value of its stock is $30 per share).

Paid-in Capital in Excess of par-Common stock/ $99,000
Common stock/ $270,000
Retained Earning / $80,000

INSTRUCTION

Record the treasury stock transaction (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes.

a) Bought 380 shares of treasury stock at $40 per share

b) Bought 300 shares of treasury stock at $45 per share.

c) Sold 350 shares of treasury stock at $45 per share

d) Sold 110 shares of treasury stock at $38 per share.

Reference no: EM1363506

Questions Cloud

Measure effectiveness of the pre-departure training program : Pre-Departure Training - How will you measure the effectiveness of the pre-departure training program provided by this external consultant

Define how fast are the waves moving : define How fast are the waves moving.

Sketch the payoff matrix for this game : Sketch the payoff matrix for this game. Identify any possible Nash equilibria in pure strategies for this game."

List course along with names of students from database table : List the courses (D-code and C-no), along with the names of the students who are currently taking them. List all the courses (D-code and C-no) that John (i.e., S-Name=''John'') got 'A' grade.

Recording issuances of common stock-treasury stock : Prepare the journal entries for these transactions, assuming that the common stock has a par value of $3 per share. Prepare the journal entries for these transactions, assuming that the common stock is on-par with a stated value of $2 per share.

Imagine the water is in freefall as it drops : imagine the water is in freefall as it drops. What charge must be on each plate.

Exposure to second-hand smoking : Exposure to second-hand smoke increases the risk of adverse health effects. Second-hand smoke has been classified by the EPA as a known carcinogen (cancer causing agent).

Explain internal and external change agents : Explain Internal and External Change Agents - When are internal change agents more likely to be successful as compared to external change agents?

Explain why does not just one orange juice for us market : If this is true, explain why does not just one state produce all of the orange juice for the U.S. market.

User Account

All Pages