E15-6 - Cash 218,000 Paid-in Capital in Excess of Par...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
E15-6 (Stock Issuances and Repurchase) Loxley Corporation is authorized to issue 50,000 shares of $10 par value common stock. During 2012, Loxley took part in the following selected transactions. 1. Issued 5,000 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,000. 2. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance. 3. Purchased 500 shares of treasury stock at $44 per share. The treasury shares purchased were issued in 2008 at $40 per share. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) (a) Prepare the journal entry to record item 1. Description/Account Debit
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Cash 218,000 Paid-in Capital in Excess of Par Common Stock (b) Prepare the journal entry to record item 2. Description/Account Debit Land 46,000 Paid-in Capital in Excess of Par Common Stock (c) Prepare the journal entry to record item 3 using the cost method. Description/Account Debit Treasury Stock 22,000 Cash Solution E15-6 (a) Description/Account Cash [(5,000 × $45) - $7,000] Paid-in Capital in Excess of Par Common Stock (5,000 × $10) (b) Description/Account Land (1,000 × $46) Paid-in Capital in Excess of Par ($46,000 - $10,000) Common Stock (1,000 × $10) Note : The fair value of the stock ($46,000) is used to value the exchange because it is a more objective measure tha (c) Description/Account Treasury Stock (500 × $44) Cash...
View Full Document

This note was uploaded on 03/25/2012 for the course ACCT 102 taught by Professor Benz during the Spring '12 term at CUNY Baruch.

Page1 / 2

E15-6 - Cash 218,000 Paid-in Capital in Excess of Par...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online