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

ans)

1. June 10 Treasury stock ( 1000 X 12) 12000

Cash 12000

July 1 Cash ( 500 X 14) 7000

Treasury stock ( 500 X 12) 6000

Additional paid in capital 1000

Sept 1 Cash ( 500 X 9.5) 4750

Additional paid in capital 1000

Retained earnings (6000 - 4750 - 1000) 250

Treasury stock 6000

2) Aug 15 Retained earnings ( 48000 X 1.5) 72000

Dividends payable 72000

Aug 31 No entry

Sep 15 Dividends payable 72000

Cash 72000

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