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 $360,000 of net income and the following selected transactions occurred in the order given:

a.

Issued 120,000 shares of the common stock at $51 cash per share.

b.

Reacquired 21,000 shares at $46 cash per share.

c.

Reissued 8,000 shares from treasury for $47 per share.

d.

Reissued 8,000 shares from treasury for $45 per share.

1.	Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to account balances with a minus sign.)

	Assets		=	Liabilities		+	Stockholders Equity
a.
b.
c.
d.

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.) 1.Record the issuance of 120,000 shares of common stock with a $5 par value for a price of $51 per share. 2.Record the purchase of 21,000 shares of previously issued common stock for a price of $46 per share. 3.Record the re-issuance of 8,000 shares of treasury stock previously purchased for a price of $46 per share and sold for $47 per share. 4.Record the re-issuance of 8,000 shares of treasury stock previously purchased for $46 per share and sold for $45 per share.

3.

Prepare the stockholders equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)

GLOBAL MARINE
Balance Sheet (Partial)
At December 31
Stockholders Equity
Contributed Capital:
Total Contributed Capital	0
Total	0
Total Stockholders Equity	$0