\"Exercise 15-6 Swifty Corporation is authorized to issue 53,000 shares of $5 pa

Question

"Exercise 15-6 Swifty Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2017, Swifty took part in the following selected transactions. 1. Issued 5,300 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $4,900 2. Issued 1,100 shares of stock for land appraised at $53,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance 3. Purchased 500 shares of treasury stock at $45 per share. The treasury shares purchased were issued in 2013 at $42 per share (a) Prepare the journal entry to record item 1 (b) Prepare the journal entry to record item 2 e 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 0 for the amounts.,) No. Account Titles and Explanation Debit Credit Question Attempts: 0 of 3 used

Explanation / Answer

No. Account Titles and Explanation Debit Credit (a) Cash [5,300 x $48 - $4,900] $249,500 Common Stock [5,300 x $5] $26,500 Paid in capital in Excess of par - Common Stock $223,000 (b) Land [1,100 x $49] $53,900 Common Stock [1,100 x $5] $5,500   Paid in capital in Excess of par - Common Stock $48,400 (c) Treasury Stock [500 x $45] $22,500 Cash $22,500

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