Question

Dan in Real Life began operations on 1/1/19. That day, the company issued 50,000 shares of $5 par value common stock to the public for a price of $40 per share. On 2/14/20, for the first time, the company repurchases 1,000 shares of common stock for a price of $42 per share.

Required (1):  On 6/15/20, the company reissues 200 shares of treasury stock to the public for a price of $45 per share. Record the journal entry for the reissuance of shares.

Remember to include financial statement effects in parentheses. All journal entry lines may not be necessary.

Date	Account	Debit	Credit
6/15/20

Question 2

Required (2):  On 9/23/20, the company reissues an additional 500 shares of treasury stock to the public for a price of $40 per share. Record the journal entry for this reissuance of shares.

Remember to include financial statement effects in parentheses. All journal entry lines may not be necessary.

Date	Account	Debit	Credit
9/23/20

Question 3

Required (3):  As of 12/20/20, the company has 49,700 shares outstanding that are trading for $50 per share. That same day, the company declares a 100% stock dividend on the $5 par value stock. Record the journal entry for the stock dividend.

Remember to include financial statement effects in parentheses. All journal entry lines may not be necessary.

Date	Account	Debit	Credit
12/20/20

Answer 1

Date	Account	Debit	Credit
6/15/20	Cash	$9,000		(200 x $45)
	Treasury Stock		$8,400	(200 x $42)
	Paid-in capital in excess of par - Treasury stock		$600
Date	Account	Debit	Credit
9/23/20	Cash	$20,000		(500 x $40)
	Paid-in capital in excess of par - Treasury stock	$600
	Retained Earnings	$400
	Treasury Stock		$21,000	(500 x $42)
Date	Account	Debit	Credit
12/20/20	Retained Earnings	$2,485,000		(49,700 x $50)
	Common Stock		$248,500	(49,700 x $5)
	Paid-in capital in excess of par - Common stock		$2,236,500	Balance