Explanation Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to the stockholders. This is an investment for the shareholders for which they receive the dividends from the issuing company, and have voting rights. Paid-in capital in excess of par value: This is the total of stock capital contributed by investors in excess of par value, and so, sometimes referred to as paid-in capital in excess of par value. It includes preferred stock capital issued in excess of par value, common stock capital issued in excess of par value, and capital issued by the way of sale of treasury stock . Treasury stock: The shares which were reacquired or bought back by the company, but not formally retired from the corporation stock, are called as treasury stock. The re-acquisition of issued shares decreases the number of outstanding shares. Record the given transactions: Date Account title and Explanation Post Ref. Debit ($) Credit ($) March 1, 2021 Cash ( 65 , 000 shares × $ 62 ) 4,030,000 Common stock ( 65 , 000 shares × $ 1 ) 65,000 Additional paid-in-capital (balance figure) 3,965,000 (To record the issue of common stock) May 10, 2021 Treasury stock ( 6 , 000 shares × $ 65 ) 390,000 Cash 390,000 (To record the purchase of treasury stock) June 1, 2021 Dividends ( 159 , 000 shares × $2 ) 318,000 Dividend payable 318,000

5th Edition

ISBN: 9781259914898

Author: SPICELAND

Publisher: MCG

See similar textbooks

Question

Chapter 10, Problem 9E

To determine

Record the given transactions.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 10, Problem 8E

Chapter 10, Problem 10E

Chapter 10 Solutions

Financial Accounting

Ch. 10 - Prob. 1SSQ Ch. 10 - Prob. 2SSQ Ch. 10 - Prob. 3SSQ Ch. 10 - 4. A company issues 10,000 shares of $0.05 par...Ch. 10 - Prob. 5SSQ Ch. 10 - Prob. 6SSQ Ch. 10 - Prob. 7SSQ Ch. 10 - Prob. 8SSQ Ch. 10 - Prob. 9SSQ Ch. 10 - Prob. 10SSQ

Ch. 10 - Prob. 11SSQ Ch. 10 - Prob. 12SSQ Ch. 10 - Prob. 13SSQ Ch. 10 - Prob. 14SSQ Ch. 10 - Prob. 15SSQ Ch. 10 - Prob. 1AE Ch. 10 - Prob. 2AE Ch. 10 - Prob. 1RQ Ch. 10 - Prob. 2RQ Ch. 10 - Prob. 3RQ Ch. 10 - Prob. 4RQ Ch. 10 - Prob. 5RQ Ch. 10 - Prob. 6RQ Ch. 10 - Prob. 7RQ Ch. 10 - Prob. 8RQ Ch. 10 - LO10–2 9. What is par value? How is it related to...Ch. 10 - Prob. 10RQ Ch. 10 - Prob. 11RQ Ch. 10 - Prob. 12RQ Ch. 10 - Prob. 13RQ Ch. 10 - Prob. 14RQ Ch. 10 - Prob. 15RQ Ch. 10 - Prob. 16RQ Ch. 10 - Prob. 17RQ Ch. 10 - Prob. 18RQ Ch. 10 - Prob. 19RQ Ch. 10 - Prob. 20RQ Ch. 10 - Prob. 21RQ Ch. 10 - Prob. 22RQ Ch. 10 - Prob. 23RQ Ch. 10 - Prob. 1BE Ch. 10 - Prob. 2BE Ch. 10 - Prob. 3BE Ch. 10 - Prob. 4BE Ch. 10 - Prob. 5BE Ch. 10 - Prob. 6BE Ch. 10 - Determine the amount of preferred stock dividends...Ch. 10 - Prob. 8BE Ch. 10 - Record sale of treasury stock (LO10–4) BE10–9...Ch. 10 - Record cash dividends (LO10–5) BE10–10 Divine...Ch. 10 - Prob. 11BE Ch. 10 - Prob. 12BE Ch. 10 - Prob. 13BE Ch. 10 - Prob. 14BE Ch. 10 - Calculate the return on equity (LO10–8) BE10–15...Ch. 10 - Match terms with their definitions (LO10–1) E10–1...Ch. 10 - Prob. 2E Ch. 10 - Prob. 3E Ch. 10 - Determine the amount of preferred stock dividends...Ch. 10 - Prob. 5E Ch. 10 - Prob. 6E Ch. 10 - Prob. 7E Ch. 10 - Prob. 8E Ch. 10 - Prob. 9E Ch. 10 - Prob. 10E Ch. 10 - Prob. 11E Ch. 10 - Prob. 12E Ch. 10 - Prob. 13E Ch. 10 - Prob. 14E Ch. 10 - Prob. 15E Ch. 10 - Prob. 16E Ch. 10 - Prob. 17E Ch. 10 - Match terms with their definitions (LO10–1) P10–1A...Ch. 10 - Prob. 2PA Ch. 10 - Indicate effect of stock dividends and stock...Ch. 10 - Prob. 4PA Ch. 10 - Prob. 5PA Ch. 10 - Prob. 6PA Ch. 10 - Prob. 7PA Ch. 10 - Prob. 1PB Ch. 10 - Prob. 2PB Ch. 10 - Prob. 3PB Ch. 10 - Prob. 4PB Ch. 10 - Prob. 5PB Ch. 10 - Prob. 6PB Ch. 10 - Prob. 7PB Ch. 10 - Prob. 1AP Ch. 10 - Prob. 2AP Ch. 10 - Prob. 3AP Ch. 10 - Prob. 4AP Ch. 10 - Prob. 5AP Ch. 10 - Prob. 7AP Ch. 10 - Prob. 8AP

Knowledge Booster

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education