### Lesson: Stock Transactions and Journal Entries#### OverviewA company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations:1. **January 1**: Issue 300,000 shares of common stock for $17 per share.2. **February 6**: Issue 1,000 shares of preferred stock for $11 per share.3. **October 10**: Purchase 9,000 shares of its own common stock for $15 per share.4. **November 12**: Resell 5,000 shares of treasury stock at $25 per share.#### InstructionsRecord each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)#### Journal Entry WorksheetTo assist you in recording the entries, follow these steps:1. View the transaction list.2. Navigate through the journal entry worksheet by selecting the transaction number.3. Record the necessary debits and credits for the transaction. Note: Enter debits before credits.![Journal Entry Worksheet Screenshot](screenshot-of-journal-entry-worksheet.png)#### Example Transaction: **October 10, 2021** - Record the purchase of 9,000 shares of its own common stock for $15 per share.##### Entry in the Journal:- **Date:** October 10, 2021- **Account:** Treasury Stock- **Debit:** (Calculate debit amount 9,000 shares * $15)- **Credit:** CashAfter recording, click "Record entry" to save the journal entry or "Clear entry" to reset the fields. View the general journal for a summary of all recorded transactions.Use this worksheet to practice recording real transactions and understanding their impact on a company's financial statements. ### Stock Transactions and Journal EntriesA company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations:- **January 1**: Issue 300,000 shares of common stock for $17 per share.- **February 6**: Issue 1,000 shares of preferred stock for $11 per share.- **October 10**: Purchase 9,000 shares of its own common stock for $15 per share.- **November 12**: Resell 5,000 shares of treasury stock at $25 per share.#### Record Each Transaction**Note:** If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.---#### Journal Entry Worksheet**Transaction:** Record the reselling of 5,000 shares of treasury stock at $25 per share.**Date:** November 12, 2021**Form for Entry:**| Date | General Journal | Debit | Credit ||---------------|----------------------------------------------------------------------|--------|--------|| Nov 12, 2021 | | | || | | | || | | | || | | | || | | | || | | | |**Instructions:**- Enter debits before credits.**Buttons:**- Record entry- Clear entry- View general journal---**Educational Purpose:** Understanding how to record these transactions in a company's journal entries helps in grasping stockholder equity management and financial statement preparation processes. Through this exercise, users will learn the practical application of accounting principles and the impact of stock transactions on a company’s financial records.

Journal entry is a system to record the business transaction in accounting books of an organization.…

A company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The transactions affect stockholders' equity during 2021, its first year of operations: January 1 Issue 300,000 shares of common stock for $17 per share. February 6 Issue 1,000 shares of preferred stock for $11 per share. October 10 Purchase 9,000 shares of its own common stock for $15 per share. November 12 Resell 5,000 shares of treasury stock at $25 per share. Record each of these transactions. (If no entry Is requlred for a particular transactlon/event, select "No Journal Entry Re the first account fleld.) View transaction list Journal entry worksheet < 1 > 2 3 Record the purchase of 9,000 shares of its own common stock for $15 per share. Note: Enter debits before credits. Date General Journal Debit Credit Oct 10, 2021 Record entry Clear entry View general jourmal

A company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The transactions affect stockholders' equity during 2021, its first year of operations: January 1 Issue 300,000 shares of common stock for $17 per share. February 6 Issue 1,000 shares of preferred stock for $11 per share. October 10 Purchase 9,000 shares of its own common stock for $15 per share. November 12 Resell 5,000 shares of treasury stock at $25 per share. Record each of these transactions. (If no entry Is requlred for a particular transactlon/event, select "No Journal Entry Re the first account fleld.) View transaction list Journal entry worksheet < 1 > 2 3 Record the purchase of 9,000 shares of its own common stock for $15 per share. Note: Enter debits before credits. Date General Journal Debit Credit Oct 10, 2021 Record entry Clear entry View general jourmal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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