Directions: Make the following journal entries/calculations as required. IF NO JOUNRAL ENTRY IS REQUIRED, WRITE “NO JOURNAL ENTRY REQUIRED” IN THE SPACE BELOW.
USE THE FOLLOWING INFORMATION FOR THE FOUR PARTS ON THE HOMEWORK.
On May 1, 2019, X-oft Corporation (a new corporation) issued 100,000 shares of its common stock for $15 per share. The stock had a par value of $2 per share.
a. What is the journal entry to record the issuance of this stock?
b) What is the journal entry to record the issuance of this stock if it were no par common stock?
c) On October 11, 2019, X-oft Corporation purchased 10,000 shares of its own stock from existing shareholders for $12 per share. What is the entry to record the purchase of this stock?
d) On October 30, 2019, the Board of Directors for X-oft Corporation declared a $.25 per share dividend to be paid December 15, 2019, to all shareholders of record on November 30, 2019. What is the journal entry (if any) to record this event on October 30?
| Date | Account title | Debit | credit |
| a)May 1 2019 | cash (100000*15) | 1500000 | |
| common stock (100000*2) | 200000 | ||
| pqaid in capital in excess of par -common stock | 1300000 | ||
| b)May 1 2019 | cash (100000*15) | 1500000 | |
| common stock | 1500000 | ||
| c)Oct 11 2019 | Treasury stock (10000*12) | 120000 | |
| cash` | 120000 | ||
| d)Oct 30 2019 | Cash dividend /Retained earning | 22500 | |
| dividend payable (90000*.25) | 22500 |
#number of shares outstanding on date of declaration : 100000-10000 repurchased =90000
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