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ld-..I low to Take a S ezto.mheducation.com/hm.tpx?= 0.9276098873 083 052-1 5 1 2982962 125 ;; Apps. E ESPN: The Worldwid Blackbuard Learn D SDSU Authenlicalic Discover Card Serv USAA/ Welcome lu Pay Ren! Fanlasyfoulball:S Orlice Pol Manager Questions 1-2 (of 5) Save&ExitSumt; Great Adventures Problem 10-1 [The following information applies to the questions displayed below Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they couldl borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock outhorized: 8%, $10 par preferredand $1 par value common. When the company began on July 1, 2018, Tony and Suzie each purchased 10,000 sheres of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during 2020, its third year of operations: July 2 Issue an additional 120,000 shares of common stock for $13 per share September 10 Repurchase 12,000 shares of its own common stock fi.e., treasury stock) for $16 per share November 15 Reissue 6,000 shares of treasury stock at $17 per share December 1 Declare a cash dividend on its common stock of $134,000 ($1 per share) to all stockholders of record on December 15 December 31 Pay the cash dividencl declared on December 1 Section Break Great Adventures Problem 10-1 1:04 AM lype here to search 12/11/20174Explanation / Answer
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Date Account Name Debit Credit Jul 2 Cash (120000 x $13) $1560000 Additional paid in capital-common stock $1440000 Common stock 120000 Sep 10 Treasury stock (12000 x $16) 192000 Cash 192000 Nov 15 Cash (6000 x $17) 102000 Additional paid in capital-treasury stock (6000 x $1) 6000 Treasury stock (6000 x $16) 96000 Dec 1 Retained earnings 134000 Dividends payable 134000 Dec 31 Dividends payable 134000 Cash 134000Related Questions
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