Question
Before James Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balance (par value of its
Before James Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balance (par value of its stock is $10 per share).
Common Stock$ 200,000
Paid-in Capital in Excess of Par$330,000
Retained Earnings$200,000
All transactions are given blow.
1. On Jan 2, bought 300 shares of treasure stock at $20 per share.
2. On Feb 10, bought 200 shares of treasure stock at $25 per share.
3. On Mar 3, bought 200 shares of treasure stock at $30 per share.
4. On Apr 8, sold 350 shares of treasury stock at $22 per share.
5. On May 20, sold 200 shares of treasury stock at 18 per share.
6. On Jun 15, 100 shares of treasure stock were exchanged for a piece of land that had a book value of $1,500. James's stock is actively traded and had a market price of $20 on June 15.
7. On Jun 30, declared 30% stock dividend (payout is scheduled in July) for common stockholders. Stock price is $25 on June 30.
Instruction:
(1) record the above transactions in journal entries (using the FIFO method for purchase-sale purpose);
(2) Make and present the balance sheet (equity part) as of June 30 (assuming there is no other transaction except for the ones listed).
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