CHAPTER 11
Record the following journal entries:
1. Company issues 1,000 shares of $4 par value common stock for $4 each
2. Company issues 1,000 shares of $4 par value common stock for $14 each
3. Company issues 1,000 shares of $4 par value common stock for equipment that
is valued at $7,500
4. Company declares a $5 per share cash dividend on its 3,000 outstanding shares
of common stock on December 5 to stockholders of record of December 15th
5. The above dividend is paid on December 29
6. Company purchases 800 shares of its own $4 par common stock paying $70 per
share
7. Company resells 200 of the above shares for $90 per share
8. Company resells 100 of the above shares for $40 per share
Calculate Earnings Per Share (EPS):
9. Company has $100,000 of Net Income and 20,000 shares of common stock
outstanding. The company has not issued any preferred stock.
10. Same as #9 above, but the company has declared a $40,000 preferred stock
dividend.
Account Name Debit Credit
1 Cash 4,000
Common Stock 4,000
2 Cash 14,000
Common Stock 4,000
Paid-in Capital In Excess of Par Value, Common 10,000
3 Equipment 7500
Common Stock 4000
Paid-in Capital In Excess of Par Value, Common 3500
4 Retained Earnings 15000
Common Dividends Payable 15000
5 Common Dividends Payable 15000
Cash 15000
6 Treasury Stock, Common 56000
Cash 56000
7 Cash 18000
Treasury Stock, Common 14000
Paid-in Capital, Treasury Stock 4000
8 Cash 4000
Paid-In Capital, Treasury Stock
Treasury Stock 7000