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In: Accounting

On January 1, 2019, Gage Inc. had 200,000 share $1 par value common stock issued and...

On January 1, 2019, Gage Inc. had 200,000 share $1 par value common stock issued and outstanding.  Prepare the following journal entries in good form:

March 1 - Issued 10,000 shares of common stock at $37 per share.

June 16 - Bought 5,000 shares of common stock at $29 per share.

Oct. 3 - Sold 2,500 shares of treasury stock at $30 per share.

Dec. 17 - Sold 1,000 shares of teasury stock at $26 per share.

Solutions

Expert Solution

Journal Entries:

Date General Journal Debit Credit
Mar-01 Cash $370000
        Common Stock $100000
         Additional paid in Capital $270000
(To record issue of Common Stock )
Date General Journal Debit Credit
Jun-16 Treasury Stock $145,000
             Cash $145,000
( To record the purchase of Treasury stock )
Date General Journal Debit Credit
Oct-03 Cash $75000
           Treasury stock $40,500
             paid in capital from treasury stock $34500
( To record the resale of treasury stock)
Date General Journal Debit Credit
Dec-17 Cash $26000
   paid in capital from treasury stock $3000
             Treasury stock $29000
( To record the resale of treasury stock)

ekkarill92 answered 3 years ago
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