Exercise 156 Stellar Corporation is authorized to issue 4800

Exercise 15-6

Stellar Corporation is authorized to issue 48,000 shares of $5 par value common stock. During 2017, Stellar took part in the following selected transactions.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

Open Show Work

1.		Issued 4,600 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $8,100.
2.		Issued 1,000 shares of stock for land appraised at $48,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance.
3.		Purchased 490 shares of treasury stock at $45 per share. The treasury shares purchased were issued in 2013 at $42 per share.

Solution

No. Account titles and Explanations Debit Credit (a) Cash    (4,600*$48 )-8,100 212700 Common stock (4600*5) 23000 paid in capital in excess of par-CS   (4,600*43) 197800 (b) Cash    (1,000*49) 49000 Common stock (1000*5) 5000 paid in capital in excess of par-CS    44000 (c ) Treasury stock (490*45) 22050 Cash 22,050