Question

Required information The following information applies to the questions displayed below.) Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,900, declared no dividends, and the following selected transactions occurred in the order given: Part 2 of 3 points a. Issued 67,000 shares of the common stock at $11 cash per share. b. Reacquired 2,700 shares at $14 cash per share from stockholders; the shares are now held in treasury. c. Reissued 1,350 of the shares in transaction (b) two months later at $17 cash per share. eBook Print 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) References View transaction list Journal entry worksheet < 1 2 3 Record the issuance of 67,000 shares of common stock with a par value $10 for a price of $11 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

Required journal entries:

Post Debit Credit Accounts titles and Explanation Date Ref (S) 737000 (S) Cash (67000*11) Common stock (67000* 10) Additional paid in capital (67000*1) (to record the issue of common stock) Jan. 11 670000 67000 July. 29 Treasury stock (2700*14) 37800 37800 Cash (to record the purchase of common stock) Aug. 10 Cash (1350*17) 22950 Treasury stock (1350*14) Additional paid in capital from treasury stock (1350 3) (to record the sale of treasury stock) 18900 4050