Question

Journalize the following transactions for Genie Corp.

A. Genie Corp began operations January 1, 2013 by selling 30,000 shares of Common Stock. Stock had a par value of $10. Proceeds from the sale were $1,000,000. The company's charter authorizes the issuance of 100,000 shares of Common Stock. They are not authorized to issue Preferred Stock.

B.Genie Corp's Board of Directors declared a $1/share dividend on Common Stock on November 24, 2013.

C. The date of record is December 28, 2013.

D. The payment date for the dividend is December 30, 2013.

D1. The company performs it closing process on December 31, 2013.

E.Genie buys back 10,000 shares of Common Stock when the market price is $20 per share on March 1, 2014.

F. Calculate the following as of March 2, 2014:

Authorized shares of Common Stock.

Issued shares of Common Stock.

Outstanding shares of Common Stock.

Answer 1

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Genie Corp.
Workings for A	Amount $
Common Stock
Number of shares issued	30,000.00
Par Value	10.00
Total Par Value	300,000.00
Issue Value	1,000,000.00
Par Value	300,000.00
Paid in capital in excess of par- Common Stock	700,000.00
Workings for B
Dividend
Shares outstanding on 28th January	30,000.00
Dividend per share	1.00
Dividend amount	30,000.00
Workings for E
Treasury Stock Purchased
Number of shares	10,000.00
Purchase Value	20.00
Treasury Stock Purchased	200,000.00

Journal Entry
Date	Account	Debit $	Credit $
1-Jan-13	Cash	1,000,000.00
	Common Stock		300,000.00
	Paid in capital in excess of par- Common Stock		700,000.00
24-Nov-13	Dividend expense	30,000.00
	Dividends Payable		30,000.00
28-Dec-13	No entry is required on date of record.
30-Dec-13	Dividends Payable	30,000.00
	Cash		30,000.00
1-Mar-14	Treasury Stock	200,000.00
	Cash		200,000.00

Answer F
Authorized shares of Common Stock	100,000.00
Issued shares of Common Stock	30,000.00
Outstanding shares of Common Stock
Issued shares of Common Stock	30,000.00
Less: Treasury Stock	10,000.00
Outstanding shares of Common Stock	20,000.00