Inland Corporation issued 30,000 shares of $5 par value common stock at $15 per share and 8,000 shares of $50 par value, eight percent preferred stock at $85 per share. Later, the company purchased 3,000 shares of its own common stock at $20 per share. a. Create the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Inland sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.c. Assume that Inland sold the remaining 1,000 shares of treasury stock at $18 per share. Prepare the journal entry to record the sale of this treasury stock. Treasury StockInland Corporation issued 30,000 shares of $5 par value common stork at $15 per share and 8,000 shares of $50 par value, eight percernt preferred stock at $85 per share. Later, the company purchased 3,.000 shares of its own commonstock at $20 per share.a. Prepare the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Inland sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.C Assume that Inland sold the remaining 1,000 shares of treasury stock at S18 per share. Prepare the journal entry to record the sale of this treasury stock.General JournalRef.DescriptionDebitCredita. CashCormmen StockPaid-in-Capital in Excess of Par Value - Common Stock vIsSsued common stack.Cash3 Percent Pmtened StockFald-in-Caaltal in Excess af Par Value - Preferred Stack +Issued prefered stark.Treasury Stodk CammonCashAcquiret commori stock.b.CashTreasury Stock - CommonPaid-in-Caoltal from Treasury StockSold shares at traas.ry srack.C.CashPaid-in Capital from Treasury StnckTreasury Stack - CammonSold shares af treasLry stack.

Answered: Inland Corporation issued 30,000 shares…

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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Question

Inland Corporation issued 30,000 shares of $5 par value common stock at $15 per share and 8,000 shares of $50 par value, eight percent preferred stock at $85 per share. Later, the company purchased 3,000 shares of its own common stock at $20 per share.

a. Create the journal entries to record the share issuances and the purchase of the common shares.

b. Assume that Inland sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.

c. Assume that Inland sold the remaining 1,000 shares of treasury stock at $18 per share. Prepare the journal entry to record the sale of this treasury stock.

Treasury Stock
Inland Corporation issued 30,000 shares of $5 par value common stork at $15 per share and 8,000 shares of $50 par value, eight percernt preferred stock at $85 per share. Later, the company purchased 3,.000 shares of its own common
stock at $20 per share.
a. Prepare the journal entries to record the share issuances and the purchase of the common shares.
b. Assume that Inland sold 2,000 shares of the treasury stock at $30 per share. Prepare the general journal entry to record the sale of this treasury stock.
C Assume that Inland sold the remaining 1,000 shares of treasury stock at S18 per share. Prepare the journal entry to record the sale of this treasury stock.
General Journal
Ref.
Description
Debit
Credit
a. Cash
Cormmen Stock
Paid-in-Capital in Excess of Par Value - Common Stock v
IsSsued common stack.
Cash
3 Percent Pmtened Stock
Fald-in-Caaltal in Excess af Par Value - Preferred Stack +
Issued prefered stark.
Treasury Stodk Cammon
Cash
Acquiret commori stock.
b.
Cash
Treasury Stock - Common
Paid-in-Caoltal from Treasury Stock
Sold shares at traas.ry srack.
C.
Cash
Paid-in Capital from Treasury Stnck
Treasury Stack - Cammon
Sold shares af treasLry stack.

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