Required information [The following information applies to the questions displayed below.] 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 $470,000 of net income and declared no dividends; the following selected transactions occurred in the order given: a. Issued 110,000 shares of the common stock at $62 cash per share. b. Reacquired 32,000 shares at $57 cash per share. c. Reissued 13,500 shares from treasury for $58 per share. d. Reissued 13,500 shares from treasury for $56 per share. Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) a. Cash a. b. Cash C. Cash C. d. Cash d. Assets 6,820,000 = (1,824,000) 783,000 = 756,000 Liabilities Stockholders' Equity +Common Stock 550,000 +Additional Paid-In Capital, Common Stock 6,270,000 + Treasury Stock (1,824,000) + Treasury Stock 783,000 +Additional Paid-In Capital, Treasury Stock + Treasury Stock +Additional Paid-In Capital, Treasury Stock 783,000

Required information [The following information applies to the questions displayed below.] 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 $470,000 of net income and declared no dividends; the following selected transactions occurred in the order given: a. Issued 110,000 shares of the common stock at $62 cash per share. b. Reacquired 32,000 shares at $57 cash per share. c. Reissued 13,500 shares from treasury for $58 per share. d. Reissued 13,500 shares from treasury for $56 per share. Required: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) a. Cash a. b. Cash C. Cash C. d. Cash d. Assets 6,820,000 = (1,824,000) 783,000 = 756,000 Liabilities Stockholders' Equity +Common Stock 550,000 +Additional Paid-In Capital, Common Stock 6,270,000 + Treasury Stock (1,824,000) + Treasury Stock 783,000 +Additional Paid-In Capital, Treasury Stock + Treasury Stock +Additional Paid-In Capital, Treasury Stock 783,000

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
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