Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Crane Company had these transactions during the current period:

June 12
Issued 87,000 shares of [tex]$1 par value common stock for cash of $[/tex]326,250.

July 11
Issued 2,800 shares of [tex]$100 par value preferred stock for cash at $[/tex]107 per share.

Nov. 28
Purchased 3,450 shares of treasury stock for [tex]$17,250.

Prepare the journal entries for the Crane Company transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

| Date | Account Titles and Explanation | Debit | Credit |
|-----------|------------------------------------------|-----------|-----------|
| June 12 | Cash | $[/tex]326,250 | |
| | Common Stock ([tex]$1 par value) | | $[/tex]87,000 |
| | Additional Paid-In Capital - Common | | [tex]$239,250 |
| July 11 | Cash | $[/tex]299,600 | |
| | Preferred Stock ([tex]$100 par value) | | $[/tex]280,000 |
| | Additional Paid-In Capital - Preferred | | [tex]$19,600 |
| Nov. 28 | Treasury Stock | $[/tex]17,250 | |
| | Cash | | $17,250 |

Sagot :

GinnyAnswer
Certainly! Let's write out the journal entries for each transaction in detail.

### June 12
Transaction: Issued 87,000 shares of \[tex]$1 par value common stock for cash of \$[/tex]326,250.

Journal Entry:
[tex]\[ \text{Date: June 12} \][/tex]
[tex]\[ \begin{array}{llrr} \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline \text{Cash} & 326,250 & \\ \text{Common Stock} & & 87,000 \\ \text{Paid-in Capital in Excess of Par - Common Stock} & & 239,250 \\ \end{array} \][/tex]

### July 11
Transaction: Issued 2,800 shares of \[tex]$100 par value preferred stock for cash at \$[/tex]107 per share.

Journal Entry:
[tex]\[ \text{Date: July 11} \][/tex]
[tex]\[ \begin{array}{llrr} \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline \text{Cash} & 299,600 & \\ \text{Preferred Stock} & & 280,000 \\ \text{Paid-in Capital in Excess of Par - Preferred Stock} & & 19,600 \\ \end{array} \][/tex]

### November 28
Transaction: Purchased 3,450 shares of treasury stock for \$17,250 cash.

Journal Entry:
[tex]\[ \text{Date: November 28} \][/tex]
[tex]\[ \begin{array}{llrr} \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline \text{Treasury Stock} & 17,250 & \\ \text{Cash} & & 17,250 \\ \end{array} \][/tex]

Combining all the journal entries, the entries are as follows:

[tex]\[ \text{Date: June 12} \][/tex]
[tex]\[ \begin{array}{llrr} \text{Cash} & 326,250 & \\ \text{Common Stock} & & 87,000 \\ \text{Paid-in Capital in Excess of Par - Common Stock} & & 239,250 \\ \end{array} \][/tex]

[tex]\[ \text{Date: July 11} \][/tex]
[tex]\[ \begin{array}{llrr} \text{Cash} & 299,600 & \\ \text{Preferred Stock} & & 280,000 \\ \text{Paid-in Capital in Excess of Par - Preferred Stock} & & 19,600 \\ \end{array} \][/tex]

[tex]\[ \text{Date: November 28} \][/tex]
[tex]\[ \begin{array}{llrr} \text{Treasury Stock} & 17,250 & \\ \text{Cash} & & 17,250 \\ \end{array} \][/tex]
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.