Unformatted text preview: share. On May 15, 2009, they reacquired 200 shares of this common stock for $25 per share. Prepare the journal entries for each of these transactions: January 1, 2009: Dr. Cash (1000 x $20) $20,000 Cr. Common Stock @ par (1000 x $1) $1,000 Cr. Additional PIC – CS ($20,000-$1,000) $19,000 May 15, 2009: Dr. Treasury Stock (200 x $25) $5,000 Cr. Cash $5,000 3. (2 points) A corporation was organized in January 2007 with authorized capital of $10 par value common stock. On March 1, 2010, the corporation's attorney accepted 7,000 shares of common stock in settlement for legal services that had been performed with a fair value of $90,000. Prepare the correct journal entry. Dr. Organization (or Legal) Expense $90,000 Cr. Common Stock @ par (7000 x $10) $70,000 Cr. Additional PIC – CS ($90,000-$70,000) $20,000...
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- Fall '09
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- Accounting
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