Ch$11$ Case Study Assignment $-$ Part $1$

Stockholders' Equity Journal Entry Problem $(2$pts $-$ Completed Journal Entries$)$

On January $1,2021,$ Crystelle Corporation had $50,000$ shares of $$1$ par value common stock issued and outstanding.

Existing shares of common stock were issued at par value.

During the year, the following transactions occurred:

Mar. $1$ Issued $60,000$ shares of common stock for $$400,000.$

June $1$ Declared a cash dividend of $$3\mathrm{.}00$ per share to stockholders of record on June $15.$

June $30$ Paid the $$3\mathrm{.}00$ cash dividend.

Dec. $1$ Purchased $6,000$ shares of common stock for the treasury for $$20$ per share.

Dec. $15$ Declared a cash dividend on outstanding shares of $$3\mathrm{.}50$ per share to stockholders of record on December $31.$

$1-$Prepare journal entries to record the above transactions.

$\backslash$table$[[$Date$,$Account Name,Debit,Credit$],[$Mar$.1,,,],[,,,],[,,,],[,,,]]$

Issued $60,000$ shares of common stock for $$400,000.$

Declared a cash dividend of $$3\mathrm{.}00$ per share to stockholders of record on June $15.$

Account Name

Debit

Credit

June $30$

$\backslash$table$[[,$Debit,$],[,,]]$

Paid the $$3\mathrm{.}00$ cash dividend.

Dec. $1$

$[-$

Purchased $6,000$ shares of common stock for treasury for $$20$ per share.

Dec. $15$

$$ Debit

Credit

Iip for completing the Dec. $15$ journal entry:

Iip: Make sure to deduct the number of shares repurchased to update the total oustanding common stock on Dec. $1$ before computing the total cash dividend amount.

Declared a cash dividend on outstanding shares of $$3\mathrm{.}50$ per share to stockholders of record on December $31.$

Compute the total value and the total shares for Outstanding stock as of December $31,2021$:

Common stock

Paid$-$in$-$capital in excess of par value

Less: Treasury stock

Outstanding stock as of Dec $31,2021$

$\backslash$table$[[\backslash$table$[[$Total dollar value$],[$@ $12/31/21]],$Total number of shares @$12/31/21],[,],[,],[,]]$