Download the 'Applying Excel' worksheet below and save it to your computer. View the tutorial video, and
Question:
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 | ? | |||||||||
| ? | ? | |||||||||
Expert Answer:
