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Wise Company had the following transactions.

1. Issued 7,000 shares of common stock with a par value of $10 for $130,000.

2. Issued 2,000 shares of $100 par preferred stock at $108 for cash.

3. Purchased 500 shares of treasury stock for $20 per share

4. Sold treasury 250 shares of treasury stock at $22 per share



Instructions

Prepare the journal entries to record the above stock transactions.

Respuesta :

anthougo

The preparation of the Journal Entries to record the stock transactions of Wise Company is as follows:

Journal Entries:

1. Debit Cash $130,000

Credit Common Stock $70,000

Credit Additional Paid-in Capital- Common Stock $60,000

  • To record the issuance of 7,000 shares at $10 for $130,000.

2. Debit Cash $216,000

Credit Preferred Stock $200,000

Credit Additional Paid-in Capital- Preferred Stock $16,000

  • To record the issuance of 2,000 shares of $100 at $108.

3. Debit Treasury Stock $5,000

Debit Additional Paid-in Capital- Common stock $5,000

Credit Cash $10,000

  • To record the purchase of 500 shares at $20.

4. Debit Cash $5,500

Credit Treasury Stock $2,500

Credit Additional Paid-in Capital- Common Stock $3,000

  • To record the sale of treasury shares at $22.

Transaction Analysis:

1. Cash $130,000 Common Stock $70,000 Additional Paid-in Capital- Common Stock $60,000

2. Cash $216,000 Preferred Stock $200,000 Additional Paid-in Capital- Preferred Stock $16,000

3. Treasury Stock $5,000 Additional Paid-in Capital- Common stock $5,000 Cash $10,000

4. Cash $5,500 Treasury Stock $2,500 Additional Paid-in Capital- Common Stock $3,000

Learn more about journalizing stock transactions at https://brainly.com/question/17439058

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