Lindsey Hunter Corporation is authorized to issue 50,200 shares of $4 par value

Question

Lindsey Hunter Corporation is authorized to issue 50,200 shares of $4 par value common stock. During 2014, Lindsey Hunter took part in the following selected transactions. Issued 5,220 shares of stock at $53 per share, less costs related to the issuance of the stock totaling $8,720. Issued 1,400 shares of stock for land appraised at $50,200. The stock was actively traded on a national stock exchange at approximately $54 per share on the date of issuance. Purchased 520 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2010 at $39 per share. Prepare the journal entry to record item 1. Prepare the journal entry to record item 2. Prepare the journal entry to record item 3 using the cost method. (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 O for the amounts.)

Explanation / Answer

Journal Entry in the books of lindsey Hunter corporation

Cash

(53*5220-8720)

To Common Stock

(5220*4)

To Paid-in Capital in Excess of Par Value

(267940-20880)

Entry Description Debit Credit (a)

Cash

(53*5220-8720)

267940

To Common Stock

(5220*4)

20880

To Paid-in Capital in Excess of Par Value

(267940-20880)

247060 (b) Land (1400*54) 75600 To Common Stock (1400*4) 5600 To Paid-in Capital in Excess of Par Value 70,000 (c) Trsury Stock (520*43) 22360 To Cash 22360

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