Question

The following is the Stockholders Equity section of Walmart at December 31, 2020:						12/31/2020	12/31/2021
Common stock, $10 par value, (700,000 shares issued and outstanding)						$7,000,000
Additional paid-in-capital CS						$4,000,000
Retained Earnings						$5,600,000
The following transactions occurred during 2021:
100,000 shares of common stock were purchased for the treasury at $24 per share
Preferred stock was issued for land. The asking price of the land was $3,500,000.
The value of the land was $3,400,000.
40,000 shares of treasury stock were sold at $28 per share
40,000 shares of treasury stock were sold at $21 per share
The remaining 20,000 shares of treasury stock were sold at $17 per share
Journalize the 5 transactions above and fill in the stockholders equity section at December 31, 2021

Answer 1

Account title and explanation	Debit	Credit
Treausry stock [100000*$24]	$2,400,000
Cash		$2,400,000
[To record repurcahse of own shares]
Land	$3,400,000
Preferred stock		$3,400,000
[To record acquistion of land in exchange of preferred stock]
Cash [40000*$28]	$1,120,000
Treasury stock [40000*$24 cost]		$960,000
Paid in capital in excess from treasury stock		$160,000
[To record sale of treasury stock]
Cash [40000*$21]	$840,000
Paid in capital in excess from treasury stock	$120,000
Treasury stock [40000*$24 cost]		$960,000
[To record sale of treasury stock]
Cash [20000*$17]	$340,000
Paid in capital in excess from treasury stock	$40,000
Retained earnings	$100,000
Treasury stock [20000*$24 cost]		$480,000
[To record sale of treasury stock]

.

Walmart
Balance sheet (Partial)
At December 31,2020
Stockholders' Equity:
Paid-in capital:
Common stock	$7,000,000
Preferred stock	$3,400,000
Total paid in capital	$10,400,000
Retained earnings [5600000-100000]	$5,500,000
Total stockholders' equity	$15,900,000