Question

Crane Ltd. had the following share transactions during its first year of operations: Jan. 6 Issued 244,000 common shares for $1.50 per share. Jan. 12 Issued 61,000 common shares for $1.75 per share.

Mar. 17 Issued 1,200 preferred shares for $105 per share.

July 18 Issued 1,220,000 common shares for $2 per share.

Nov. 17 Reacquired 244,000 common shares for $1.95 per share.

Dec. 30 Reacquired 183,000 common shares for $1.80 per share.

Answer 1

Date	Account title and explanation	Debit	Credit
Jan 6	Cash [244000*$1.50]	$366,000
	Common stock		$366,000
	[To record issuance of common stock for cash]
Jan 12	Cash [61000*$1.75]	$106,750
	Common stock		$106,750
	[To record issuance of common stock for cash]
Mar 17	Cash [1200*$105]	$126,000
	Preferred stock		$126,000
	[To record issuance of preferred stock for cash]
July 18	Cash [1220000*$2]	$2,440,000
	Common stock		$2,440,000
	[To record issuance of common stock for cash]
Nov 17	Treasury stock [244000*$1.95]	$475,800
	Cash		$475,800
	[To record repurchase of own shares]
Dec 30	Treasury stock [183000*$1.80]	$329,400
	Cash		$329,400
	[To record repurchase of own shares]