1) On April 10, a company acquired land in exchange for 1,500 shares of $30 par common stock with a current market price of $73. Journalize this transaction.

2) A corporation purchased for cash 5,000 shares of its own $10 par common stock at $34 a share. In the following year, it sold 2,000 of the treasury shares at $38 a share for cash.

a) Journalize the entries to record the purchase (treasury stock is recorded at cost)

b) Journalize the entries to record the sale of the stock.

3) Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet. 50,000 shares of common stock are authorized and 5,000 shares have been reacquired.

Common stock, $50 par $1,500,000
Paid In Capital in excess of par $ 250,000
Paid in capital from sale of Treasury stock $42,000
Retained Earnings 4,350,000
Treasury Stock 155,000

Answer rating: 100% (QA)

Date General Journal Debit Credit 10Apr Land 1000 shares 73 73000 Common Stock 20 par 1000 20 P... View the full answer