Test: Ch 13 Exam Spring 18 This Question: 22 pts 5 of 8 (0 complete) Stock trans

Question

Test: Ch 13 Exam Spring 18 This Question: 22 pts 5 of 8 (0 complete) Stock transactions for Defense Driving School, Inc. follow (Click the icon to view the transactions.) Jounalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table Mar. 4: Issued 20,000 shares of $1 par value common stock at $9 per share Date Accounts and Explanation Debit Credit Mar. 4 May 22: Purchased 1,500 shares of treasury stock-common at $12 per share. Date Accounts and Explanation Debit Credit May 22 Choose from any list or enter any number in the input fields and then continue to the next question. esc 6 2 4

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Mar 4 Cash (20000*9) 180000     Common stock 20000      Paid in capital in excess of par value 160000 (issue common stock) May 22 Treasury stock (1500*12) 18000      Cash 18000 (To record treasury stock repurchased) Sept 22 Cash (300*21) 6300     Treasury stock 3600     Paid in capital from sale of treasury stock 2700 (To record sale of treasury stock) Oct 14 Cash (1200*11) 13200 Paid in capital from sale of treasury stock 1200       Treasury stock (1200*12) 14400 (To record sale of treasury stock)

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