Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Larkspur Corporation is authorized to issue 50,000 shares of $ 5 par value common stock. During 2020, Larkspur took part in the following selected transactions.

Larkspur Corporation is authorized to issue 50,000 shares of $ 5 par value common stock. During 2020, Larkspur took part in the following selected transactions.

1. Issued 5,100 shares of stock at $ 43 per share, less costs related to the issuance of the stock totaling $ 6,900.
2. Issued 1,000 shares of stock for land appraised at $ 50,000. The stock was actively traded on a national stock exchange at approximately $ 44 per share on the date of issuance.
3. Purchased 550 shares of treasury stock at $ 41 per share. The treasury shares purchased were issued in 2016 at $ 38 per share.

(a) Prepare the journal entry to record item 1.
(b) Prepare the journal entry to record item 2.
(c) Prepare the journal entry to record item 3 using the cost method.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

(a)

enter an account title to record the first item

enter a debit amount

enter a credit amount

enter an account title to record the first item

enter a debit amount

enter a credit amount

enter an account title to record the first item

enter a debit amount

enter a credit amount

(b)

enter an account title to record the second item

enter a debit amount

enter a credit amount

enter an account title to record the second item

enter a debit amount

enter a credit amount

enter an account title to record the second item

enter a debit amount

enter a credit amount

(c)

enter an account title to record the third item using the cost method

enter a debit amount

enter a credit amount

enter an account title to record the third item using the cost method

enter a debit amount

enter a credit amount

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

Alaskas Permanent Fund Dividend Examining Its Suitability As A Model

Authors: K. Widerquist, M. Howard

2nd Edition

0230112072, 9780230112070

More Books

Students also viewed these Accounting questions

Question

Considering the discussion in Box

Answered: 1 week ago