Homework SourseOn January 1 2014 Vidalia Company issued 30000 shares of 2 p
On January 1, 2014, Vidalia Company issued 30,000 shares of $2 par value common stock for $150,000. On March 1, 2014, the company purchased 6,000 shares of its common stock for $8 per share for the treasury. On June 1, 2014, 1,500 of the treasury shares are sold for $10 per share. On September 1, 2014, 3,000 treasury shares are sold at $6 per share. Instructions: Journalize the stock transactions of Vidalia Company in 2014.
Solution
Journal entry :
| Date | account & explanation | debit | credit |
| Jan 1, 2014 | Cash | 150000 | |
| Common Stock (30000*2) | 60000 | ||
| Paid in capital in excess of par value | 90000 | ||
| (To record issue common stock) | |||
| Mar 1, 2014 | Treasury Stock (6000*8) | 48000 | |
| Cash | 48000 | ||
| (To record Stock repurchased) | |||
| Jun 1, 2014 | Cash | 15000 | |
| Treasury stock (1500*8) | 12000 | ||
| Paid in capital from sale of treasury stock | 3000 | ||
| (TO record sale of treasury stock) | |||
| Sep 1, 2014 | Cash (3000*6) | 18000 | |
| Paid in capital from sale of treasury stock | 3000 | ||
| Retained earnings | 3000 | ||
| Treasury stock (3000*8) | 24000 | ||
| (To record sale of treasury stock) | |||
