Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year...

Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year.

May 18 Issues 25,000 additional shares of $1 par value common stock for $35 per share.

May 31 Repurchases 6,000 shares of treasury stock for $44 per share.

July 1 Declares a cash dividend of $1 per share to all stockholders of record on July 15.

Hint: Dividends are not paid on treasury stock.

July 31 Pays the cash dividend declared on July 1.

August 10 Reissues 2,900 shares of treasury stock purchased on May 31 for $49 per share.

Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Solutions

Expert Solution

Record each of these transactions

Date	accountss & explantion	debit	credit
May 18	Cash	875000
	Common stock		25000
	Paid in capital in excess of par value-common stock		850000
	(To record issue common stock)

May 31	Treasury stock	264000
	Cash		264000
	(To record treasury stock repurchased)

July 1	Cash dividend (25000-6000)*1	19000
	Cash dividend payable		19000
	(To record dividend declared)

July 15	No entry

July 31	Cash dividend payable	19000
	Cash		19000
	(To record dividend paid)

Aug 10	Cash (2900*49)	142100
	Treasury stock (2900*44)		127600
	Paid in capital from sale of treasury stock (2900*5)		14500
	(To record reissue treasury stock)

ekkarill92 answered 1 year ago

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