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    Accounting - Journal Entries

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    Present entries to record the following:

    (a) Issued 1,000 shares of $15 par common stock at $52 for cash.
    (b) Issued 1,400 shares of common stock in exchange for equipment with a fair market price of $21,000.
    (c) Purchased 100 shares of treasury stock at $25.
    (d) Sold 100 shares of treasury stock at $28.

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    Solution Preview

    Hi there,
    Here are your journal entries:
    DR: Common Stock 15,000
    DR: Loss on Sale of Stock 37,000
    CR: Cash 52,000

    DR: Equipment 21,000
    CR: Common Stock 21,000

    DR: Treasury Stock 2,500
    CR: Cash 2.500

    DR: Cash 2,800
    CR: Treasury Stock 2,800

    I hope this helps. Also, here is some background info for you regarding journal entries:

    When a transaction occurs, a document is produced. This document is referred to as a source document. Some examples of source ...

    Solution Summary

    The expert examines accounting and journal entries for common stocks.