Whyville Corporation obtained its charter from the state in January that authorized 500,000 shares of common stock, $1 par value. During the first year, the company earned $57,000 and declared no dividends; the following selected transactions occurred in the order given: a. Issued 190,000 shares of the common stock at $22 cash per share. b. Reacquired 4,900 shares at $23 cash per share to use as stock Incentives for senior management. 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Whyville Corporation obtained its charter from the state in January that authorized 500,000 shares of common stock, $1 par value. During the first year, the company earned $57,000 and declared no dividends; the following selected transactions occurred in the order given: a. Issued 190,000 shares of the common stock at $22 cash per share. b. Reacquired 4,900 shares at $23 cash per share to use as stock Incentives for senior management. 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Whyville Corporation obtained its charter from the state in January that authorized 500,000 shares of common stock, $1
par value. During the first year, the company earned $57,000 and declared no dividends; the following selected
transactions occurred in the order given:
a. Issued 190,000 shares of the common stock at $22 cash per share.
b. Reacquired 4,900 shares at $23 cash per share to use as stock Incentives for senior management.
2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
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