Question

Equity Transactions

Tritch Technology began its operations in January of 20Y4. The transactions below occurred during its first year of operations.

REQUIREMENT: Record the general journal entry needed for each transaction. Debit entries need to be listed first. Please do not indent credit entries. Dollar values need to be entered with no dollar sign and appropriate commas (e.g. 5,000). If no account title is needed in a blank, put "Blank" in the space provided.

Example: Borrowed $5,000 from a bank.

Account Title	Debit	Credit
Cash	5,000	0
Notes Payable	0	5,000
Blank	0	0

1. On January 10, Tritch issued 20,000 shares of $10 par value common stock for $22 per share.

Account Title	Debit	Credit

2.  On March 15, Tritch issued 1,000 shares of $15 par value, 5% preferred stock for $15 per share.

Account Title	Debit	Credit

3. on October 20, Tritch repurchased 4,000 shares of its own common stock from the market for $24 per share.

Account Title	Debit	Credit

4. Tritch declared the annual preferred stock dividend on December 15. The dividend will be paid to shareholders in the following year.

Account Title	Debit	Credit

5. Tritch declared a $.50 per share cash dividend to common stockholders on December 20. The dividend will be paid to shareholders in the following year.

Account Title

Debit

Credit

Answer 1

1.

Account title	Debit	Credit
Cash (20,000*22)	440,000
Common stock (20,000*10)		200,000
Paid in excess of par value (20,000*12)		240,000

2.

Account title	Debit	Credit
Cash (1,000*15)	15,000
Preferred stock		15,000

3.

Account title	Debit	Credit
Treasury stock (4,000*24)	96,000
Cash		96,000

4.

Account title	Debit	Credit
Retained earnings (15,000*5%)	750
Dividend payable		750

5.

Account title	Debit	Credit
Retained earnings (20,000-4,000)*10*0.50	80,000
Dividend payable		80,000