Sheffield Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 8,700 shares) $502,800 Retained Earnings 277,400 Prepare entries in journal form to record the following transactions, which took place during 2021 (1) 260 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $20 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) 370 of the shares purchased in (5) above were resold at $96 per share.
Problem 15-06
Sheffield Company has the following
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Common Stock ($100 par value, authorized 8,700 shares) |
$502,800 |
|
|
|
277,400 |
Prepare entries in journal form to record the following transactions, which took place during 2021
|
(1) |
260 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) |
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|
(2) |
A $20 per share cash dividend was declared. |
|
|
(3) |
The dividend declared in (2) above was paid. |
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|
(4) |
The treasury shares purchased in (1) above were resold at $103 per share. |
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|
(5) |
480 shares of outstanding stock were purchased at $106 per share. |
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|
(6) |
370 of the shares purchased in (5) above were resold at $96 per share. |
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