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Quiz 7 Answers

Quiz 7 Answers - stock for the treasury at $30 per share...

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Name ___________________________ USC ID# _________________________ Class (Circle) ___ 2PM or 4 PM_ _______ QUIZ 7 NewCo had recently incorporated and has not yet issued any stock. On November 1, 2011, NewCo’s Board of Directors authorized 100,000 shares of $1 par value common stock. Record the general journal entries for each of the following transactions: 1. On November 1, 2011, NewCo issues 80,000 shares of common stock at $21 per share. Cash 1,680,000 Common stock 80,000 Additional paid in capital 1,600,000 2. NewCo has a very good first six months and on May 1, 2012 repurchases 5,000 shares of
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Unformatted text preview: stock for the treasury at $30 per share Treasury stock 150,000 Cash 150,000 3. The only stock transactions during the first year are the two transactions above. On October 31, 2012 NewCo declares a cash dividend of $2 per share for shareholders of record on November 1, 2012, payable on November 15, 2012. Retained earnings (or dividends) 150,000 Dividends payable 150,000 (80,000 share – 5,000 shares) * $2 per share 4. On November 15, 2012, NewCo pays the dividend. Dividends payable 150,000 Cash 150,000 Page 1 of 1...
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