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FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

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Waterway Inc. has outstanding 14,000 shares of $10 par value common stock. On July 1, 2025, Waterway reacquired 109 shares at
$87 per share. On September 1, Waterway reissued 62 shares at $92 per share. On November 1, Waterway reissued 47 shares at
$85 per share.
Prepare Waterway's journal entries to record these transactions using the cost method. (List all debit entries before credit entries. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.)
Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Waterway Inc. has outstanding 14,000 shares of $10 par value common stock. On July 1, 2025, Waterway reacquired 109 shares at $87 per share. On September 1, Waterway reissued 62 shares at $92 per share. On November 1, Waterway reissued 47 shares at $85 per share. Prepare Waterway's journal entries to record these transactions using the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit
Windsor Corporation has outstanding 440,000 shares of $10 par value common stock. The corporation declares a 100% stock
dividend when the fair value of the stock is $69 per share.
Prepare the journal entries for both the date of declaration and the date of distribution. (List all debit entries before credit entries. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
Account Titles and Explanation
Declaration Date
Retained Earnings
Dividends Payable
Distribution Date
Common Stock Dividend Distributable
Common Stock
Debit
30360000
110
440000
Credit
006
30360000
440000
Transcribed Image Text:Windsor Corporation has outstanding 440,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend when the fair value of the stock is $69 per share. Prepare the journal entries for both the date of declaration and the date of distribution. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Declaration Date Retained Earnings Dividends Payable Distribution Date Common Stock Dividend Distributable Common Stock Debit 30360000 110 440000 Credit 006 30360000 440000
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