Download the 'Applying Excel' worksheet below and save it to your computer. View the tutorial video, and then complete the worksheet.

Enter formulas in cells that contain question marks (only use formulas). After entering formulas in all of the cells that contain question marks, verify that the amounts match the example below.

(a) Issuance of common stock

January 1	Debit			Credit
Cash		1,600,000
Common Stock					1,000
Additional Paid-in Capital					1,599,000

(b) Purchase of treasury stock

March 18	Debit			Credit
Treasury Stock		27,000
Cash					27,000

(c) Sale of treasury stock

November 11	Debit			Credit
Cash		6,200
Treasury Stock					5,400
Additional Paid-in Capital					800

Check your worksheet setup and formulas by changing the number of common shares issued to 150,000, and the number of treasury shares purchased to 2,000.

You should now have a worksheet that shows the following results:

(a) Issuance of common stock

January 1	Debit			Credit
Cash		2,400,000
Common Stock					1,500
Additional Paid-in Capital					2,398,500

(b) Purchase of treasury stock

March 18	Debit			Credit
Treasury Stock		54,000
Cash					54,000

(c) Sale of treasury stock

November 11	Debit			Credit
Cash		12,400
Treasury Stock					10,800
Additional Paid-in Capital					1,600

If you do not get these answers, review your worksheet and the formulas you used and try again.

Save your completed Applying Excel form to your computer and then upload it here by clicking “Browse”. Next click “Save”. You will use this worksheet to answer questions in Part 2.

Required:
Based on the information below prepare the journal entries to record 1) the issuance of the common stock and 2 ) the purchase and subsequent sale of the treasury stock.
Given Information*				Answers:
January 1
Number of common shares issued	100,000			(a) Issuance of common stock
Par value per share	$0.01				January 1
Issue price per share	$16.00				Cash		?
						Common Stock		?
March 18						Additional Paid-in Capital		?
Number of shares purchased	1,000
Purchase price per share	$27.00			(b) Purchase of treasury stock
					March 18
November 11					Treasury Stock		?
% of shares resold	20%					Cash		?
Resale price per share	$31.00
				(c) Sale of treasury stock
					November 11
					?		?
					Cash		?
						Treasury Stock		?
						?		?