Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized 9% 10 par referred a $1 per ai e common. When the company began on July 1, 2018, Tony and Suzie each purchased 12,500 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders equity during 2020, its third year of operations: July 2 Issue an additional 120,000 shares of common stock for $14 per share. September 10 Repurchase 12,000 shares of its own common stock (i.e., treasury stock) for $17 per share. November 15 Reissue 6,000 shares of treasury stock at $18 per share. December 1 Declare a cash dividend on its common stock of $139,000 ($1 per share) to all stockholders of record on December 15 December 31 Pay the cash dividend declared on December 1. Journal entry worksheet 2 3 4 6 Issue an additional 120,000 shares of common stock for $14 per share Note: Enter debits before credits. Date General Journal Debit Credit July 02, 2020 Repurchase 12,000 shares of its own common stock (i.e., treasury stock) for $17 per share Note: Enter debits before credits Date General Journal Debit Credit September 10, 2020 Reissue 6,000 shares of treasury stock at $18 per share. Note: Enter debits before credits Debit Credit Date General Journal November 15, 2020 Declare a cash dividend on its common stock of $139,000 ($1 per share) to all stockholders of record on December 15 Note: Enter debits before credits Date General Journal Debit Credit December 01, 2020 Record the entry on the date of record Note: Enter debits before credits. Date General Journal Debit Credit December 15, 2020 Pay the cash dividend declared on Dec. 1 Note: Enter debits before credits General Journal Debit Credit Date December 31, 2020 Answer is not complete. Date General Journal Debit Credit July 02, 2020 Cash 01 1,680,000 20,000 1,560,000 Common stock Additional paid-in capital September 10, 2020 Treasury stock Common stock Retained earnings 12,000 156,000 36,000 Cash 204,000 November 15 2020 108,000 Cash Treasury stock Additional paid-in capital 6,000 102,000 December 01 2020 139,000 4 Common stock Dividends payable 139,000 December 15 2020 No journal entry required December 31 2020 139,000 6 Dividends payable Cash 139,000
