Waterway Company has the following stockholders’ equity accounts at December 31, 2020.Common Stock ($100 par value, authorized 8,700 shares) $502,800Retained Earnings 277,400(a) Prepare entries in journal form to record the following transactions, which took place during 2021. (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) 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. No. Account Titles and ExplanationDebitCredit1.4.2.3.5. 6.

Amount paid on repurchase of treasury stock = 260 shares × $97 = $25220 Number of shares…

Answered: Waterway Company has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

(a)

Prepare entries in journal form to record the following transactions, which took place during 2021. (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)		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.