On December 31, 2020, Rebel Corporation's balance sheet reported the following. Common Stock, 100,000 issued $2 Par $200,000 Paid in capital in excess of par 800,000 Paid in capital share repurchase 5,500 Retained earnings 528,000 Treasury stock (2,000 shares at cost) (24,000) During 2021, Rebel Corporation had the following transactions dealing with its common shares: Jan. 15 Purchased 2,000 shares for immediate retirements at $12 per share. Feb. 10 Purchased 5,000 shares as treasury shares at $13 per share. April 1 Reissued 3,000 treasury shares at $11 per share. June 25 Retired 1,000 treasury shares when market value of each share was $12.50. July 1 Declared a cash dividend of 50 cents per share, payable July 25 to stock-holders of record on July 15. July 30 Declared and issued a 40% stock dividend when the market value per share was currently $13. Sept. 5 A two-for-one split was carried out. The par value of the stock was to be reduced to $1.00 per share. Market value on Sept. 5 was $14 per share. Oct. 1 Purchased land in exchange for 10,000 shares of Rebel’s common shares. Market value on Oct. 1 was $15 per share and the fair value of land was not readily determinable. Nov. 30 Declared and issued a 10% stock dividend when the market value per share was currently $15. Cash was paid for fractional share rights representing 1,000 equivalent whole shares. REQUIRED: Prepare the journal entries to record the above transactions for 2021 in the books of Rebel Corporation. If no journal entry is required for a transaction, write “No Journal Entry”. Assume that Rebel Corporation uses FIFO for stock transactions.
On December 31, 2020, Rebel Corporation's
Common Stock, 100,000 issued $2 Par $200,000
Paid in capital in excess of par 800,000
Paid in capital share repurchase 5,500
During 2021, Rebel Corporation had the following transactions dealing with its common shares:
Jan. 15 Purchased 2,000 shares for immediate retirements at $12 per share.
Feb. 10 Purchased 5,000 shares as treasury shares at $13 per share.
April 1 Reissued 3,000 treasury shares at $11 per share.
June 25 Retired 1,000 treasury shares when market value of each share was $12.50.
July 1 Declared a cash dividend of 50 cents per share, payable July 25 to stock-holders of record on July 15.
July 30 Declared and issued a 40% stock dividend when the market value per share was currently $13.
Sept. 5 A two-for-one split was carried out. The par value of the stock was to be reduced to $1.00 per share. Market value on Sept. 5 was $14 per share.
Oct. 1 Purchased land in exchange for 10,000 shares of Rebel’s common shares. Market value on Oct. 1 was $15 per share and the fair value of land was not readily determinable.
Nov. 30 Declared and issued a 10% stock dividend when the market value per share was currently $15. Cash was paid for fractional share rights representing 1,000 equivalent whole shares.
REQUIRED:
Prepare the journal entries to record the above transactions for 2021 in the books of Rebel Corporation.
If no
Corporation uses FIFO for stock transactions.
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