Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I believe I am out of order on the oct 12 entry, and I also cannot figure out the debit amounts for the two additional

image text in transcribed

image text in transcribed

I believe I am out of order on the oct 12 entry, and I also cannot figure out the debit amounts for the two additional paid-in capital's. Please help

On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of $50 par preferred stock were outstanding. These were issued at a price of $75 per share. During the year, the following stock transactions occurred: 1. March 3: Lorain reacquired 100 shares of its own common stock at a cost of $24 per share. 2. April 27: It sold 25 shares of the common stock acquired on March 3 for $33 per share. 3. July 10: It sold 25 shares of the common stock acquired on March 3 for $22 per share. 4. October 12: It retired the remaining shares acquired on March 3. Required: Prepare journal entries to record the treasury stock transactions of Lorain, assuming it uses the cost method. GENERAL JOURNAL Score: 140/149 ACCOUNT TITLE POST. REF. CREDIT DATE Mar. 3' Treasury Stock DEBIT 2,400.00 Cash 2,400.00 Apr. 27 Cash 825.00 600.00 225.00 Treasury Stock Additional Paid-in Capital from Treasury Stock Cash Additional Paid-in Capital from Treasury Stock Jul. 10 550.000 50.00 Treasury Stock 600.00 250.00 Oct. 12' Common Stock Additional Paid-in Capital from Treasury Stock Additional Paid-in Capital on Common Stock Treasury Stock 1,200.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lost Continent The BBCs Europe Editor On Europes Darkest Hour Since World War Two

Authors: Gavin Hewitt

1st Edition

1444764829, 9781444764826

More Books

Students also viewed these Accounting questions