Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year. May18Issues 20,000 additional shares of $1 par value common stock for $40 per share.May31Purchases 4,000 shares of treasury stock for $41 per share.July1Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock.July31Pays the cash dividend declared on July 1.August10Resells 2,100 shares of treasury stock purchased on May 31 for $49 per share.Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the issuance of 20,000 additional shares of $1 par value common stock for $40 per share.TransactionGeneral JournalDebitCreditMay 18 Record the purchase of 4,000 shares of treasury stock for $41 per share.TransactionGeneral JournalDebitCreditMay 31 Record the declaration of a cash dividend of $2 per share to all stockholders of record on July 15. Dividends are not paid on treasury stock.TransactionGeneral JournalDebitCreditJul 01 Record the payment of the cash the cash dividend declared on July 1.TransactionGeneral JournalDebitCreditJul 31 Record the resale of 2,100 shares of treasury stock purchased on May 31 for $49 per share.TransactionGeneral JournalDebitCreditAug 10

The question is based on the concept of Financial Accounting.Date General Journal Debit Credit May 18 Cash 800000 =20000*40 Common Stock 20000 =20000*1 Additional Paid-in Capital 780000 May 31 Treasury Stock 164000 =4000*41 Cash 164000 July 1 Dividends 232000 =(100000+20000-4000)*2 Dividends Payable 232000 July 31 Dividends Payable 232000 Cash 232000 August 10 Cash 102900 =2100*49 Treasury Stock 86100 =2100*41 Additional Paid-in Capital 16800

Answered: Court Casuals has 100,000 shares of…

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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Court Casuals has 100,000 shares of common stock outstanding as of the beginning of the year and has the following transactions affecting stockholders' equity during the year.

May	18	Issues 20,000 additional shares of $1 par value common stock for $40 per share.
May	31	Purchases 4,000 shares of treasury stock for $41 per share.
July	1	Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock.
July	31	Pays the cash dividend declared on July 1.
August	10	Resells 2,100 shares of treasury stock purchased on May 31 for $49 per share.

Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Record the issuance of 20,000 additional shares of $1 par value common stock for $40 per share.
Transaction General Journal Debit Credit

May 18
Record the purchase of 4,000 shares of treasury stock for $41 per share.

Transaction General Journal Debit Credit

May 31

Record the declaration of a cash dividend of $2 per share to all stockholders of record on July 15. Dividends are not paid on treasury stock.

Transaction General Journal Debit Credit

Jul 01

Record the payment of the cash the cash dividend declared on July 1.

Transaction General Journal Debit Credit

Jul 31

Record the resale of 2,100 shares of treasury stock purchased on May 31 for $49 per share.

Transaction General Journal Debit Credit

Aug 10

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