Question
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 |
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