Question
In: Accounting
Sheridan Inc. has outstanding 14,500 shares of $10 par value common stock. On July
Sheridan Inc. has outstanding 14,500 shares of $10 par value common stock. On July 1, 2020, Sheridan reacquired 112 shares at $88 per share. On September 1, Sheridan reissued 65 shares at $94 per share. On November 1, Sheridan reissued 47 shares at $86 per share. Prepare Sheridan’s journal entries to record these transactions using the cost method.
Solutions
Expert Solution
| Date | Account titles and explanation | Debit | Credit |
|---|---|---|---|
| 7/1/20 | Treasury stock | 9856 | |
| Cash (112*88) | 9856 | ||
| (to record treasury stock purchase) | |||
| 9/1/20 | Cash (65*94) | 6110 | |
| Treasury stock (65*88) | 5720 | ||
| Paid in capital from treasury stock | 390 | ||
| (to record treasury stock sold) | |||
| 11/1/20 | Cash (47*86) | 4042 | |
| Paid in capital from treasury stock | 94 | ||
| Treasury stock (47*88) | 4136 | ||
| (to record treasury stock sold) | |||
| Date | Account titles and explanation | Debit | Credit |
|---|---|---|---|
| 7/1/20 | Treasury stock | 9856 | |
| Cash (112*88) | 9856 | ||
| (to record treasury stock purchase) | |||
| 9/1/20 | Cash (65*94) | 6110 | |
| Treasury stock (65*88) | 5720 | ||
| Paid in capital from treasury stock | 390 | ||
| (to record treasury stock sold) | |||
| 11/1/20 | Cash (47*86) | 4042 | |
| Paid in capital from treasury stock | 94 | ||
| Treasury stock (47*88) | 4136 | ||
| (to record treasury stock sold) | |||
Umair answered 2 years agoRelated Solutions
Green Day Corporation has outstanding 400,000 shares of $10 par value common stock.
Green Day Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 5% stock dividend when the fair value of the stock is $65 per share. Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.
Flint Corporation has outstanding 2,979,000 shares with common stock of a par value of $10 each....
Flint Corporation has outstanding 2,979,000 shares with common
stock of a par value of $10 each. The balance in its Retained
Earnings account at January 1, 2017, was $23,993,000, and it then
had Paid-in Capital in Excess of Par—Common Stock of $4,983,000.
During 2017, the company’s net income was $4,658,000. A cash
dividend of $0.60 a share was declared on May 5, 2017, and was paid
June 30, 2017, and a 6% stock dividend was declared on November 30,
2017,...
Pina Corporation has outstanding 2,973,000 shares of common stock with a par value of $10 each....
Pina Corporation has outstanding 2,973,000 shares of common
stock with a par value of $10 each. The balance in its Retained
Earnings account at January 1, 2020, was $23,787,000, and it then
had Paid-in Capital in Excess of Par—Common Stock of $5,044,000.
During 2020, the company’s net income was $4,693,000. A cash
dividend of $0.60 a share was declared on May 5, 2020, and was paid
June 30, 2020, and a 6% stock dividend was declared on November 30,
2020,...
Teal Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each....
Teal Corporation has outstanding 3,020,000 shares with common
stock of a par value of $10 each. The balance in its Retained
Earnings account at January 1, 2017, was $24,056,000, and it then
had Paid-in Capital in Excess of Par—Common Stock of $4,960,000.
During 2017, the company’s net income was $4,713,000. A cash
dividend of $0.60 a share was declared on May 5, 2017, and was paid
June 30, 2017, and a 6% stock dividend was declared on November 30,
2017,...
Teal Corporation has outstanding 3,020,000 shares with common stock of a par value of $10 each....
Teal Corporation has outstanding 3,020,000 shares with common
stock of a par value of $10 each. The balance in its Retained
Earnings account at January 1, 2017, was $24,056,000, and it then
had Paid-in Capital in Excess of Par—Common Stock of $4,960,000.
During 2017, the company’s net income was $4,713,000. A cash
dividend of $0.60 a share was declared on May 5, 2017, and was paid
June 30, 2017, and a 6% stock dividend was declared on November 30,
2017,...
Wilson Corporation issued and has outstanding 134,400 shares of $10 par-value common stock and 2,800 shares...
Wilson Corporation issued and has outstanding 134,400 shares of
$10 par-value common stock and 2,800 shares of $70 par-value 20
percent preferred stock. The board of directors votes to distribute
$4,200 as dividends in 2016, $7,000 in 2017, and $308,000 in
2018.
Compute the total dividend and the dividend for each share paid
to preferred stockholders and common stockholders each year under
the following assumed situations.
Case A: The preferred stock is nonparticipating and
noncumulative. (Round your per share...
30. Yoder, Inc. has 150,000 shares of $10 par value common stock and 75,000 shares of...
30. Yoder, Inc. has 150,000 shares of $10 par value common stock
and 75,000 shares of $10 par value, 6%, cumulative, participating
preferred stock outstanding. Dividends on the preferred stock are
one year in arrears. Assuming that Yoder wishes to distribute
$405,000 as dividends, the common stockholders will receive:
Flounder Corporation has outstanding 517,000 shares of $10 par value common stock. The corporation declares a...
Flounder Corporation has outstanding 517,000 shares of $10 par
value common stock. The corporation declares a 5% stock dividend
when the fair value of the stock is $62 per share.
Prepare the journal entries for Flounder Corporation for both the
date of declaration and the date of distribution.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)...
Tamarisk Corporation has outstanding 125,000 shares of $10 par value common stock. The corporation declares the...
Tamarisk Corporation has outstanding 125,000 shares of $10 par
value common stock. The corporation declares the following stock
dividends when the fair value of the stock is $65 per share.
Prepare the journal entries for Tamarisk Corporation for both the
date of declaration and the date of distribution.
Stock dividend is 15%
Stock dividend is 70%
Carington Corp. has outstanding 10 million shares of $2 par value common stock and 1 million...
Carington Corp. has outstanding 10 million shares of $2 par
value common stock and 1 million shares of 7% $4 par value
preferred stock. The company declares total dividends amounting to
$50,000, $250,000, and $600,000 during 2017,2018, and 2019,
respectively. Calculate the amount of dividends to be distributed
to preferred and common shareholders under each of the two
following scenarios:
A) The preferred stock is noncumulative
B) The preferred sock is cumulative
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co.,...
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
ADVERTISEMENT