Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Chapter 11 Quiz The Murphy Corporation is authorized to issue 500,000 shares of

ID: 2588306 • Letter: C

Question

Chapter 11 Quiz The Murphy Corporation is authorized to issue 500,000 shares of $1 par value common stock. During 2019, the company has the following stock transactions. Jan. 15 Issued 200,000 shares of stock at $6 per share. Sept. 5 Purchased 30,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December 15, payable January 5, 2020. Instructions Journalize the transactions for the Murphy Corporation on journal paper. OMIT explanations

Explanation / Answer

Answer: JOURNAL ENTRIES

Date

Particulars

Debit

Credit

Jan.15

Cash                                             

          common stock

          Paid up capital in excess of par

1,200,000

200,000

1,000,000

Sept.5

Treasury Stock                          

             Cash

240,000

240,000

Dec. 6

Retained Earnings

               Dividend Payable

85,000

85,000

Date

Particulars

Debit

Credit

Jan.15

Cash                                             

          common stock

          Paid up capital in excess of par

1,200,000

200,000

1,000,000

Sept.5

Treasury Stock                          

             Cash

240,000

240,000

Dec. 6

Retained Earnings

               Dividend Payable

85,000

85,000

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote