Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $450,000 of net income, declared no dividends, and the following selected transactions occurred in the order given: Issued 120,000 shares of the common stock at $60 cash per share.Reacquired 30,000 shares at $55 cash per share.Reissued 12,500 shares from treasury for $56 per share.Reissued 12,500 shares from treasury for $54 per share. PA11-1 Part 22. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)      Next Visit question mapQuestion 12 linked to 13of18Total12 1

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Asked Apr 30, 2019
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Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $450,000 of net income, declared no dividends, and the following selected transactions occurred in the order given:

 

  1. Issued 120,000 shares of the common stock at $60 cash per share.
  2. Reacquired 30,000 shares at $55 cash per share.
  3. Reissued 12,500 shares from treasury for $56 per share.
  4. Reissued 12,500 shares from treasury for $54 per share.

 

PA11-1 Part 2

2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

 

 

 

 

 
 
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Question 12 linked to 13of18Total12 1
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Expert Answer

Step 1

1. The stock has been issued at $60. Given par value is $5. SO, excess paid in capital =$60-$5= $55

2. The re-issue stock is bought back. So, treasury stock is debited and cash paid is credited

3. When treasury stock is purchased at $55 and re-issued at $56, this means that ...

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