Question

Domaine Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2018, the company has the following stock transactions.

Jan. 15		Issued 500,000 shares of stock at $7 per share.
Sept. 5		Purchased 30,000 shares of common stock for the treasury at $9 per share.

Journalize the transactions for Domaine Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 15
Sept. 5

Answer 1

Date	Description	Debit $	Credit $
Jan-15	Cash (500,000x7)	3500000
	Common stock(500,000x1)		500000
	Paid in capital -excess of par (500,000x6)		3000000
	(To record the issue of common stock)
Sep-15	Treasury Stock (30,000*9)	270000
	Cash		270000
	(To record the purchase of tresury stock)