Question
PA11-1 Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance Sheet Involving Stock Issuance and Purchase Transactions [ LO 11-2] Global Marine
PA11-1 Analyzing Accounting Equation Effects, Recording Journal Entries, and Preparing a Partial Balance Sheet Involving Stock Issuance and Purchase Transactions [ LO 11-2]
Global Marine obtained a charter from the state in January 2013, which authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $400,000 of net income and the following selected transactions occurred in the order given: |
a. | Issued 100,000 shares of the common stock at $55 cash per share. |
b. | Reacquired 25,000 shares at $50 cash per share. |
c. | Reissued 10,000 shares from treasury for $51 per share. |
d. | Reissued 10,000 shares from treasury for $49 per share. |
Required: | |
1. | Indicate the account and amount for the above transactions. (Enter decreases with a minus sign.) |
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.) |
3. | Prepare the stockholders equity section of the balance sheet at December 31, 2013. (Amounts to be deducted should be indicated by a minus sign.) |
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