The following information applies to the questions displayed below Worldwide Com

Question

The following information applies to the questions displayed below Worldwide Company obtained e charter from the stete in Jenuary that euthorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,300 and the following selected transactions occurred in the order given: a· Issued 61,000 shares of the common stock at $11 cash per share. b. Reacqulred 2,100 shares at S14 cash per share from stockholders; the shares are now held in treasury. C Reissued 1,050 of the shares in transaction ( two months later at $17 cash per share. 7 Required information 10.00 points Required: 1. Indicating the account, amount, and direction of the effect on above transaction. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity a. b.

Explanation / Answer

1) Assets liabilities Stockholders Equity a. Cash 671000 Common stock 610000 paid in excess of par 61,000 b. cash -29400 treasury stock -29400 c. cash 17850 treasury stock 14700 paid in excess of par TS 3150 659450 Journal entries Transaction General Journal Debit Credit a. Cash 671,000 common stock 610,000 paid in excess of par-CS 61,000 b. Treasury stock 29,400 cash 29,400 c. cash 17,850 treasury stock 14,700 paid in capital in excess of par-TS 3,150 Stockholders Equity Contributed capital: $10 par value 200,000 shares of common stock authorized 610,000 61,000 shares issued and 57,850 outstanding paid in capital in excess of par 61,000 paid in capital in excess of par -TS 3,150 total contributed capital 674,150 add:Retained earnings 38,300 total contributed capital & retained earnings 712,450 less:Treasury stock -14,700 total stockholders Equity 697,750

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