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 explanationsExplanation / 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
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