Sarasota Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 8,800 shares) $523,200 Retained Earnings 309,100 (a) Prepare entries in journal form to record the following transactions, which took place during 2021. (1) 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $21 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $103 per share. (5) 480 shares of outstanding stock were purchased at $106 per share. (6) 320 of the shares purchased in (5) above were resold at $96 per share.
Sarasota Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 8,800 shares) $523,200 Retained Earnings 309,100 (a) Prepare entries in journal form to record the following transactions, which took place during 2021. (1) 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $21 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $103 per share. (5) 480 shares of outstanding stock were purchased at $106 per share. (6) 320 of the shares purchased in (5) above were resold at $96 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sarasota Company has the following stockholders’ equity accounts at December 31, 2020.
| Common Stock ($100 par value, authorized 8,800 shares) | $523,200 | |
| 309,100 |
(a) Prepare entries in journal form to record the following transactions, which took place during 2021.
| (1) | 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) | |
| (2) | A $21 per share cash dividend was declared. | |
| (3) | The dividend declared in (2) above was paid. | |
| (4) | The treasury shares purchased in (1) above were resold at $103 per share. | |
| (5) | 480 shares of outstanding stock were purchased at $106 per share. | |
| (6) | 320 of the shares purchased in (5) above were resold at $96 per share. |
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