calculations must be shown toreceive fullcredit. Journal entries must be in prop

Question

calculations must be shown toreceive fullcredit. Journal entries must be in proper format. * -1. Jupiter Co. reported the following information at January 1,2016: Common Stock, $1 par, 100,000 shares authorized, 50,000 shares issued and outstanding During 2016, the following transactions occurred:* · June 1042 Repurchased 1,000 shares of its outstanding common stock for $12 per share -July 1 Sold 500 shares of treasury stock for $14 per share.' - Sept. 1» Sold 500 shares of treasury stock for $9.50 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 $1.50 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

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JOURNAL ENTRY FOR JUPITER CO FOR 2016 Date Particulars Debit Credit 01-Jan-16 Cash A/c $50,000         To Common Stock A/c $50,000 (50,000 shares issued $1 par share) 10-Jun-16 Cash A/c $12,000         To Common Stock A/c $12,000 (Repurchased 1,000 shares @ $12per) 01-Jul-16 Shares A/c $7,000          To Cash A/c $7,000 (Sold 500 shares @ $14 per share) 01-Sep-16 Shares A/c $4,750         To Cash A/c $4,750 (Sold 500 shared @ $9.50 per share)

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