Nash Corporation is authorized to issue 52,000 shares of $5 par value common stock. During 2020, Nash took part in the following selected transactions.1. Issued 5,300 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $7,800.2. Issued 1,200 shares of stock for land appraised at $52,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance.3. Purchased 500 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2016 at $40 per share. (a) Prepare the journal entry to record item 1.(b) Prepare the journal entry to record item 2.(c) Prepare the journal entry to record item 3 using the cost method.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1. Common Stock - Common Stock is the shares issued to the common shares holders of the company. It…

Answered: Nash Corporation is authorized to issue…

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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Nash Corporation is authorized to issue 52,000 shares of $5 par value common stock. During 2020, Nash took part in the following selected transactions.

1.		Issued 5,300 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $7,800.
2.		Issued 1,200 shares of stock for land appraised at $52,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance.
3.		Purchased 500 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2016 at $40 per share.

(a)		Prepare the journal entry to record item 1.
(b)		Prepare the journal entry to record item 2.
(c)		Prepare the journal entry to record item 3 using the cost method.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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