Question

Randy Company has 600,000 shares of common stock outstanding. Each share of common stock has a par value of $10. Please prepare journal entries to record the following INDEPENDENT transactions:

1. Randy’s directors declare a 10% stock dividend on September 1, 2019. On that date, the stock is trading on the market at $30 per share.

2. Randy purchases 1,000 of its outstanding shares on January 10, 2019 for $20 per share.

3. On April 1, 2019, Randy reissues 2,000 treasury shares for $40 share. The shares were previously purchased in 2017 for $30 per share. There is no balance in the APIC-Treasury Stock account.

4. Randy issues 20,000 additional shares on September 1, 2019 for $50 per share.

(SHOW ALL WORK)

Answer 1

Date	General Journal	Debit	Credit
Sep-01	Stock dividend (600,000*10%*$30)	$   1,800,000
	Dividend distributable (600,000*10%*$10)		$      600,000
	Additional Paid in capital - Common stock		$   1,200,000
Jan-10	Treasury stock (1,000*$20)	$        20,000
	Cash		$        20,000
Apr-01	Cash (2,000*$40)	$        80,000
	Treasury stock (2,000*$30)		$        60,000
	Additional paid in capital - Treasury stock		$        20,000
Sep-01	Cash (20,000*$50)	$   1,000,000
	Common stock (20,000*$10)		$      200,000
	Additional Paid in capital - Common stock		$      800,000

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