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form, pIn proper from post the necessary journal entries from material learned i

ID: 2381712 • Letter: F

Question

form, pIn proper from post the necessary journal entries from material learned in chapter 11 to record the following:                                                                                                                             

May   

1- Issued 1,000 shares of $15 par common   stock at $54 for cash.

May

19- Issued 1,400 shares of no-par common   stock in exchange for equipment with a fair market price of $24,000.

June 1

Purchased 100 shares of treasury stock   at $26.

June15

Sold 100 shares of treasury stock   purchased in (c) at $30.

  

May   

     

1- Issued 1,000 shares of $15 par common   stock at $54 for cash.

     

May

     

19- Issued 1,400 shares of no-par common   stock in exchange for equipment with a fair market price of $24,000.

     

June 1

     

Purchased 100 shares of treasury stock   at $26.

     

June15

     

Sold 100 shares of treasury stock   purchased in (c) at $30.

  

Explanation / Answer

DATE PARTICULARS DEBIT CREDIT 1-May Bank A/C 54000     To Common Stock A/C 15000     To Securities Premium A/C 39000 [Issue of shares for cash.] 19-May Equipment A/C 24000     To Common Stock A/C 21000     To Securities Premium A/C 3000 [Issue of shares for equipments.] 1-Jun Investment (Treasury Stock) A/C 2600     To Bank A/C 2600 [Purchased Treasury Stock @ $26/share.] 15-Jun Bank A/C 3000     To Profit on Sale of Investment A/C 400     To Investment (Treasury Stock) A/C 2600 [Sold Treasury Stock @ $30/share.]