Exercise 156 Stellar Corporation is authorized to issue 5400

Exercise 15-6 Stellar Corporation is authorized to issue 54,000 shares of $5 par value common stock. During 2017, Stellar took part in the following selected transactions. 1. Issued 5,200 shares of stock at $42 per share, less costs related to the issuance of the stock totaling $5,900. 2. Issued 1,000 shares of stock for land appraised at $54,000. The stock was actively traded on a national stock exchange at approximately $43 per share on the date of issuance 3. Purchased 460 shares of treasury stock at $43 per share. The treasury shares purchased were issued in 2013 at $40 per share. (a) Prepare the journal entry to record item 1 (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost methad. (Credit acount 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 for the amounts.) No. Account Titles and Explanation Debit Credit

Solution

Journals Debit Credit a) Cash/Bank 218400 To Share Capital 26000 To Share Premium 192400 Share Issue Expenses 5900 To Cash/Bank 5900