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.
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 ...
The expert examines accounting and journal entries for common stocks.