Question

In its published SEC 10-K Balance Sheet for the FY 2015, Alpha Company, had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 8,000 shares issued and outstanding) $800,000 Common Stock ($10 par value, 200,000 shares authorized, 120,000 shares issued and outstanding) $1,200,000 Paid-in Capital in Excess of par, Common 150,000 Retained Earnings 700,000 The following are related events that occurred during 2016: January 2, Alpha declared a 10% stock dividend on its common stock when Alpha's common stock was trading for $15 per share on that day. Stock dividends were distributed on January 31 to shareholders as of January 25. February 29, Alpha reacquired 1,000 shares of common stock for $22 each. March 31, Alpha reissued 350 shares of treasury stock for $25 each. July 1, Alpha reissued 400 shares of treasury stock for $19 each. October 1, Alpha declared full year cash dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15. December 1, issued 10,000 shares of common stock for equipment with a sticker price of $210,000. Alpha's common stock was trading at $20 per share that day. Net Income for 2016 was $250,000 Use this information to prepare General Journal entries, without explanations, for the 2016 noted transactions

Answer 1

Journal entries:
Date	Accounts title and explanations				Debit $	Credit $
2-Jan	Retained earnings Dr.   (120000*15% *15)				270000
	Stockk dividend distributable					180000
	Paid in capital					90000
25-Jan	Stock dividend distributable Dr.				180000
	Common Stock capital					180000
Feb-29	Treasury stock Dr.				22000
	Cash account (1000*22)					22000
31-Mar	Cash account Dr.				8750
	Treasury stock (350*22)					7700
	Paid in capital-Treasury (350*3)					1050
1-Jul	Cash account Dr.				7600
	Paid in capital-Treassury				1050
	Retained earnings				150
	Treasury stock (400*22)					8800
1-Oct	Dividend-Preferred Dr.				40000
	Dividend-Common Dr.				180000
	Dividend payable					220000
1-Dec	Equipment Dr.				200000
	Common Stock capital					100000
	paid in capital-Common					100000
31-Dec	Income Summary Dr.				250000
	Retained earnings					250000