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

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 you please help with this question?

Explanation / Answer

Journal entries

Cash

Using cost method)

5000

Date account titles debit credit a Jan10,2015 cash 40000 Common stock 10000 Additional paid in capital 30000 b Mar8,2015 retained earnings 20000 Dividend payable 20000 c June 29,2015 treasury stock 5000

Cash

Using cost method)

5000

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