Gillian\'s Gem\'s has Common Stock with $1 per value and has the following trans

ID: 2481257 • Letter: G

Question

Gillian's Gem's has Common Stock with $1 per value and has the following transactions for the year:

a. Gillian sells or issues 10,000 shares of Common Stock for $4 per share for cash on Jan 10, 2015.

b. Gillian declares a $2.00 Cash Dividend on March 8, 2015, payable to shareholder's of record April 1st 2015.

c. Gillian reacquires a 1,000 shares of the Common Stock for the Treasury at $5 per share for cash on June 29th 2015.

Required: Record the entries in the Journal.

Would someone please help with this question?

a. Cash Dr $40000

To Commonstock $10000

To Excess paid in capital $30000

(10000 shares issued for cash at $4 per share, premium $3 per share)

b. Dividend Expense Dr $20000

To Dividend Payble $20000

(Dividend of $2 per share declared)

c. Treasury Stock Dr $5000

To Cash $5000

(Treasury stock purchased for cash)

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