Visited Getting Started Global Manne obtained a charter trom the state in Januar
ID: 2427258 • Letter: V
Question
Visited Getting Started Global Manne obtained a charter trom the state in January that authontzed 1,000,000 shares of common stock, $5 per value Duning the first year, the company eamed $450,000 of net income and the following selected transactions occurred in the order given a Issued 120,000 shares of the common stock at $60 cash per share b Reacquired 30000 shares t$55 cash per share c. Ressued 12,500 shares from treasury for $56 per share d Reissued 12,500 shares trom treasury for $54 per share Required informaton 2.00 points Required: 1· Indicate the account, amount, and direction of the effect on above transaction (Enter any decreases to account balances with a minus sign. 2/24 Search the web and WindowsExplanation / Answer
Journal entries
Balance sheet
Contributed capital
Common stock $600,000
Paid in excess of par 6,600,000
Treasury stock 687,500
total contributed captial 7,887,500
Add:Retained Earnings 450,000
total $8,337,500
less:treasury stock (275,000)
Total $8,062,500
Assets = Liabilities + Stockholders's Equity cash 7,200,000 0 7,200,000 -1,650,000 -1,650,000 700,000 700,000 675,000 675,000Related Questions
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