IThe tollowing information appliles to the questions displayed below] Global Mar

Question

IThe tollowing information appliles to the questions displayed below] Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $350,000 of net income and the following selected transactions occurred in the order given a. Issued 100,000 shares of the common stock at $50 cash per share b. Reacquired 20,000 shares at $45 cash per share c. Reissued 7,500 shares from treasury for $46 per share. d. Reissued 7500 shares from treasury for $44 per share value: 8.00 points 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet

Explanation / Answer

Journal entry :

Stockholder's equity section :

Date accounts & explanation debit credit Cash a/c (100000*50) 5000000 Common stock (100000*5) 500000 Additional paid in capital 4500000 (To record issue of common stock) Treasury stock a/c 900000 Cash a/c 900000 (To record treasury stock purchased) Cash a/c 345000 Treasury stock 337500 Additional paid in capital from sale of treasury stock 7500 (TO record reissue of treasury stock) Cash a/c (7500*44) 330000 Additional paid in capital from sale of treasury stock 7500 Treasury stock a/c 337500 (To record reissue of treasury stock)

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