1.Jupiter Co. reported the following information at January 1, 2016: Commen Stec

Question

1.Jupiter Co. reported the following information at January 1, 2016: Commen Steck, S1 par, 108,000 shares authorined S8 000 shares inseed and eutstanding During 2016, the following transactions occurred: June 10 Repurchased 1,000 shares of its eutstanding commn seck for $12 per share July I Seld 500 shares of treasary steck for $14 per share. Sept. 1 Sold 500 shares of treasury stock for se per share. Required: Prepare the journal entries that Meyer needs to record for each of these 2016 transactions. 2. Madison Co. has issued 50,000 shares of common stock; 48,000 shares are outstanding and 2,000 shares are held as treasury stock. On August 15, 2016, Madison's board of directors declared a cash dividend of S1.50 per share, payable on September 15, 2016, to stockholders of record on August 31, 2016. Required: Prepare any necessary journal entries for August 15, August 31, and September 15

Explanation / Answer

Jun-10 Treasury stock 12000         Cash 12000 Jul-01 Cash 7000      Treasury stock 6000      Paid in capital from sale of Treasury stock 1000 Sep-01 Cash 4750 Paid in capital from sale of Treasury stock 1000 Reatined earnings 250      Treasury stock 6000 2 Aug-15 Dividends 72000          Dividends payable 72000 Aug-31 No entry Sep-15 Dividends payable 72000          Cash 72000

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