The following information applies to the questions displayed below.] Worldwide C
ID: 2575791 • Letter: T
Question
The following information applies to the questions displayed below.] Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $37,600 and the following selected transactions occurred in the order given: a. Issued 54,000 shares of the common stock at $11 cash per share. b. Reacquired 1,400 shares at $14 cash per share from stockholders: the shares are now held in treasury. c. Reissued 700 of the shares in transaction (b) two months later at $17 cash per share.Explanation / Answer
A. record the issuance of 54,000 shares of common stock with a par value $10 for a price of $11 per share
Dr Cash 594,000
Cr Common Stock 540,000
Cr Contributed capital in excess of par 54,000
B. record the purchase of 1400 shares of previously issued common stock for a price of $14 per share.
Dr Treasury Stock 19600
Cr Cash 19600
C. record the re-issuance of 700 shares of treasury stock treasury previously purchased for a price of $14 per share and sold for $17 per share.
Dr Cash 11900
Cr Treasury Stock 9,800
Cr Contributed capital in excess of par 2,100
3.
Assets = liabilities + stockholders equity A Cash 594,000 = + Common stock 540,000 + Contributed capital in excess of par 54,000 B Cash -19600 = + Treasury stock -19600 C Cash 11900 = + Treasury stock 9800 Contributed capital in excess of par 2100Related Questions
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