Blue Company is authorized to issue 2,000,000 shares of common stock. On May 1, 2006, Blue issued 10,000 shares at $40 per share.

Record the journal entry to issue the shares on assuming the common stock as a $.50 par value per share. Record the journal entry to issue the shares assuming the common stock has no par value and no stated value. Record the journal entry to issue the shares assuming the common stock has no par value, but a stated value of $2 per share.

On January 1, 2005, Miranda Company issued 20,000 shares of $1 par value common stock for $300,000. On May 1, 2005, the company purchased 3,000 shares of its common stock for $10 per share for the treasury. On July 1, 2005, 1,000 of the treasury shares are sold for $15 per share. On December 1, 2005, 2,000 treasury shares are sold at $3 per share.

Journalize the stock transactions that occurred on May 1, July 1 and December 1. Explain the impact each transaction has on the financial statements (identify the impact as an increase or a decrease and specify the amount of the increase or decrease). What is the balance in Additional Paid-in Capital from Treasury Stock after the entry is recorded on July 1? What is the balance in Additional Paid-in Capital from Treasury Stock after the entry is recorded on December 1? Prior to these transactions, the balance in Retained Earnings was $100,000. What is the balance in Retained Earnings after all transactions are recorded?

May 1 Purchase of Treasury Stock

Financial statement impact:

Treasury stock Equity Cash Assets

July 1 Sale of Treasury Stock

Financial statement impact:

Treasury stock Addl PIC TS Equity Cash Assets

Dec 1 Sale of Treasury Stock

Financial statement impact: Treasury stock Cash Addl PIC TS Assets Retained Earnings Equity

Stockholder's Equity Blue Company is authorized to issue 2,000,000 shares of common stock. On May 1, 2006, Blue issued 10,000 shares at $40 per share. 1. 2. 3. Record the journal entry to issue the shares on assuming the common stock as a $.50 par value per share. Record the journal entry to issue the shares assuming the common stock has no par value and no stated value. Record the journal entry to issue the shares assuming the common stock has no par value, but a stated value of $2 per share. Stockholder's Equit On January 1, 2005, Miranda Company issued 20,000 shares of $1 par value common stock for $300,000. On May 1,2005, the company purchased 3,000 shares of its common stock for $10 per share for the treasury. On July 1,2005, 1,000 of the treasury shares are sold for $15 per share. On December 1,2005, 2,000 treasury shares are sold at $3 per share re. On Becenmber 1, 203, 2,00 e s9 1. Journalize the stock transactions that occurred on May 1, July 1 and December 1 2. Explain the impact each transaction has on the financial statements (identify the impact as an increase or a decrease and specify the amount of the increase or 3. What is the balance in Additional Paid-in Capital from Treasury Stock after the entry 4. What is the balance in Additional Paid-in Capital from Treasury Stock after the entry 5. Prior to these transactions, the balance in Retained Earnings was $100,000. What is is recorded on July 1? is recorded on December 1? the balance in Retained Earnings after all transactions are recorded? urhase of Treasury Stock May Financial statement im Treasury stock Equity Assets Cash Financial statement im Treasury stock Add'l PIC TS Equity Cash Assets Dec 1 Treasury stock Add'l PIC TS Cash Assets 2I Page Stockholder's Equity Retained Earnings Equity