Exercise 15-6 Lindsey Hunter Corporation is authorized to issue 54,600 shares of

Question

Exercise 15-6

Lindsey Hunter Corporation is authorized to issue 54,600 shares of $4 par value common stock. During 2014, Lindsey Hunter took part in the following selected transactions.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

1. Issued 5,340 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $7,750. 2. Issued 1,410 shares of stock for land appraised at $54,600. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance. 3. Purchased 570 shares of treasury stock at $42 per share. The treasury shares purchased were issued in 2010 at $38 per share.

Explanation / Answer

No. Account Titles and Explanation Debit $ Credit $ (a) Cash A/c DR 256320 To Common Stock A/c 21360 To Excess Over Paid-Up Capital A/c 234960 Stock Issuance Costs A/c DR 7750 To Cash A/c 7750 (b) Land A/c DR 54600 Loss on Issuance of Stock A/c 14490 To Common Stock A/c 5640 To Excess Over Paid-Up Capital A/c 63450 (c) Treasury Stock A/c 21660 To Cash A/c 21660 Excess Over Paid-Up Capital A/c 2280 To Treasury Stock A/c 2280

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