Problem 16 points 2017 Jan 1 Dial Company issued 15000 share

Problem (16 points) 2017 Jan. 1 Dial Company issued 15,000 shares of $2 par value common stock for $100,000. Jan.30 Dial Company issued attorneys 1,000 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a valu of $7,000. Mar. 1 Dial purchased 2,000 shares of its own common stock for $10 per share for the treasury June 1 Dial Company declared cash dividends of $30,000. July 9 Dial Company paid cash dividends declared on June 1 Instructions Journalize the stock transactions of Dial Company in 2016 Debit Date Jan 1 Account Titles Credit Jan 30 Mar. 1 June 1 July 9

Solution

1-Jan Cash 100000        Common Stock 30000 =15000*2        Paid-In Capital in Excess of Par Value 70000 30-Jan Organization expense 7000        Common Stock 2000        Paid-In Capital in Excess of Par Value 5000 1-Mar Treasury stock 20000        Cash 20000 1-Jun Dividends/Retained earnings 30000       Cash dividends payable 30000 9-Jul Cash dividends payable 30000        Cash 30000