Hamad Town Company had the following balances in the stockholders' equity accounts at Dec. 31, 2020: - Common stock, $10 par, 50,000 shares authorized, 30,000 shares issued and outstanding Paid in Capital in Excess of Par Value, Common Stock Retained Eamings.. The following transactions occurred during 2021: 1. Feb. 20 Purchased 2,000 of its own shares for $ 18 per share. 2. March 10 Declared a $2 per share cash dividend on the outstanding common stock. 3. April 07: Paid the cash dividends declared early in March 10. 4. May 20: Sold all treasury shares for $19 each. 5 Oct 1: Declared 10% stock dividends on the outstanding common stock for the record of Nov. 1 and to be distributed on Dec. 10; The market value of stock on Oct. 1 was $144 per S 300,000 200,000 500,000 share. 6. Dec. 10. Distributed the shares which declared on Oct 1. 7. Dec. 25: Implemented a 2-for-1 stock split, when the market value of stock was $26 per share. NOTE: If there is no entry, please write: "NO ENTRY" Required: Prepare Journal entries to record transactions that occurred during 2021. CLEARLY INDICATE THE DEBITS & CREDITS Example: on 1 January 2020, XYZ Company pays $10,000 cash to purchase land

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Hamad Town Company had the following balances in the stockholders' equity accounts at Dec. 31, 2020:
- Common stock, $10 par, 50,000 shares authorized, 30 000 shares issued and outstanding
- Paid in Capital in Excess of Par Value, Common Stock
- Retained Eamings
The following transactions occurred during 2021:
1. Feb. 20: Purchased 2,000 of its own shares for $ 18 per share.
2. March 10: Declared a $2 per share cash dividend on the outstanding common stock.
3. April 07: Paid the cash dividends declared early in March 10
4 May 20: Sold all treasury shares for $19 each.
5. Oct 1: Declared 10% stock dividends on the outstanding common stock for the record of Nov. 1 and to be distributed on Dec. 10; The market value of stock on Oct 1 was $14 per
S 300,000
200,000
500,000
share.
6. Dec. 10: Distributed the shares which declared on Oct 1.
7. Dec. 25 Implemented a 2-for-1 stock split, when the market value of stock was $26 per share.
NO TE: If there is no entry, please write: "NO ENTRY"
Required: Prepare Journal entries to record transactions that occurred during 2021.
CLEARLY INDICATE THE DEBITS & CREDITS
Example: on 1 January 2020, XYZ Company pays $10,000 cash to purchase land
Answer
1/1/2020
Dr. Land
10,000
Cr. Cash
10,000
Transcribed Image Text:Hamad Town Company had the following balances in the stockholders' equity accounts at Dec. 31, 2020: - Common stock, $10 par, 50,000 shares authorized, 30 000 shares issued and outstanding - Paid in Capital in Excess of Par Value, Common Stock - Retained Eamings The following transactions occurred during 2021: 1. Feb. 20: Purchased 2,000 of its own shares for $ 18 per share. 2. March 10: Declared a $2 per share cash dividend on the outstanding common stock. 3. April 07: Paid the cash dividends declared early in March 10 4 May 20: Sold all treasury shares for $19 each. 5. Oct 1: Declared 10% stock dividends on the outstanding common stock for the record of Nov. 1 and to be distributed on Dec. 10; The market value of stock on Oct 1 was $14 per S 300,000 200,000 500,000 share. 6. Dec. 10: Distributed the shares which declared on Oct 1. 7. Dec. 25 Implemented a 2-for-1 stock split, when the market value of stock was $26 per share. NO TE: If there is no entry, please write: "NO ENTRY" Required: Prepare Journal entries to record transactions that occurred during 2021. CLEARLY INDICATE THE DEBITS & CREDITS Example: on 1 January 2020, XYZ Company pays $10,000 cash to purchase land Answer 1/1/2020 Dr. Land 10,000 Cr. Cash 10,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education