Chart of Accounts Journal Final Questions X Instructions Lawn Smart Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On May 29 of the current year, Lawn Smart Inc. reacquired 19,100 shares of its common stock at $20 per share. On August 11, 13,700 of the reacquired shares were sold at $25 per share, and on October 30, 4,000 of the reacquired shares were sold at $21. Required: A. Journalize the transactions of May 29, August 11, and October 30. Refer to the Chart of Accounts for exact wording of account titles. B. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? C. What is the balance in Treasury Stock on December 31 of the current year? D. How will the balance in Treasury Stock be reported on the balance sheet?
CHART OF ACCOUNTS |
Lawn Smart Inc. |
General Ledger |
| ASSETS | 110 | Cash | 120 | Accounts Receivable | 131 | Notes Receivable | 132 | Interest Receivable | 141 | Merchandise Inventory | 145 | Office Supplies | 151 | Prepaid Insurance | 181 | Land | 193 | Equipment | 194 | Accumulated Depreciation-Equipment | | LIABILITIES | 210 | Accounts Payable | 221 | Notes Payable | 226 | Interest Payable | 231 | Cash Dividends Payable | 236 | Stock Dividends Distributable | 241 | Salaries Payable | 261 | Mortgage Note Payable | | EQUITY | 311 | Common Stock | 312 | Paid-In Capital in Excess of Par-Common Stock | 315 | Treasury Stock | 321 | Preferred Stock | 322 | Paid-In Capital in Excess of Par-Preferred Stock | 331 | Paid-In Capital from Sale of Treasury Stock | 340 | Retained Earnings | 351 | Cash Dividends | 352 | Stock Dividends | 390 | Income Summary | | | REVENUE | 410 | Sales | 610 | Interest Revenue | | EXPENSES | 510 | Cost of Merchandise Sold | 515 | Credit Card Expense | 520 | Salaries Expense | 531 | Advertising Expense | 532 | Delivery Expense | 533 | Selling Expenses | 534 | Rent Expense | 535 | Insurance Expense | 536 | Office Supplies Expense | 537 | Organizational Expenses | 562 | Depreciation Expense-Equipment | 590 | Miscellaneous Expense | 710 | Interest | |