Question

On January 1, 2019, Jonathan Corporation had 75,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:

Mar 1: Issued 30,000 shares, not previously issued of common stock for $575,000

June 1: Declared a cash dividend of $1.00 per share to stockholders of record on June 15

June 30: Paid the $1.00 cash dividend

July 1: Declared and issued a 10% stock dividend

Dec 1: Purchased 5,000 shares of common stock for the treasury for $15 per share

Dec 10: Sold 100 treasury stock of $16 per share

Dec 15: Declared a cash dividend on outstanding shares of $1.00 per share to stockholders of record on December 31

Instructions: Prepare journal entries to record the above transactions

Please make sure that all of them have been answered, last time I uploaded this July 1st and December 10th were missing

Answer 1

Journal Entries:

Date	Account title and explantion	Debit	Credit
Mar 1	Cash	$575,000
	Comon stock [30,000 x $1 par]		$30,000
	Paid-in capital in excess of par - Common		$545,000
	[To record issuance of common stock]
June 1	Retained earnings [105,000 x $1.00]	$105,000
	Dividends payable-Common		$105,000
	[To record declaration of dividends]
July 30	Dividends payable-Common	$105,000
	Cash		$105,000
	[To record payment of dividends]
July 1	Retained earnings		$10,500
	Common stock dividend distributable [105,000 x 10% x $1par]
	[To record declared and issuance of stock dividends]
Dec 1	Treasury stock [5000 x $15 cost]	$75,000
	Cash		$75,000
	[To record purchase of own shares]
Dec 10	Cash [100 x $16]	$1,600
	Treasury stock [100 x $15 cost]		$1,500
	Paid-in capital from treasury stock		$100
	[To record sale of treasury stock]
Dec 15	Retained earnings [110,60 x $1.00]	$110,600
	Dividends payable-Common		$110,600
	[To record declaration of dividends]

Calculations:

Outstanding shares
Beginning	75,000
New issue	30,000
Balance	105,000
Stock dividends [105,000 x 10%]	10,500
Balance	115,500
Treasury stock	-5,000
Balance	110,500
Sale of tresury stock	100
Dec 15 Balance	110,600

*Assumed that stock dividends issued at par Because of no information about market value per share.