Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 4% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 2,500 shares of its own common stock at $14 per share.
Apr. 10 Reissued 1,250 shares of its common stock held in the treasury for $18 per share.
Jun. 12 Reissued 1,250 shares of common stock at $12 per share.
Journalize the transactions.

Sagot :

Tundexi

Answer:

          Ellajane Corporation - Journal Entries

Date       Particulars                       Debit         Credit

1-Mar      Treasury Stock              $35,000

                     To Cash                                       $35,000

               (Being 2500 shares of treasury stock purchased at $14 per share)

10-Apr       Cash A/c (1250*$18)    $22,500

                        To Treasury Stock (1250*14)      $17,500

                        To Additional Paid in Capital     $5,000

                 (Being 1250 shares of treasury stock sold at $18 per share)

12-Jun       Cash A/c (1250*12)                      $15,000

                  Additional Paid in Capital A/c   $2,500

                          To Treasury Stock (1250*14)                 $17,500

                   (Being 1250 shares of treasury stock sold at $12 per share)

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.