8 pts 2 of 7 7 This Test 40 pts Retained eamings had a balan

8 pts 2 of 7 (7 This Test: 40 pts Retained eamings had a balance of $108,000. During 2016, the company completed the Requirement 1. Record the transactions in the journal. E

Solution

Journal entries Date Accounts title and explanations Debit $ Credit $ 15-Feb Treasury Stock Account Dr. 64000       Cash account (8000*8) 64000 8-Mar Cash account Dr. 36000      Treasury Stock Account 32000       Paid in capital Treasury stock Account 4000 28-Sep Retained earnings (101000*15% @ 8) 121200      Common Stock capital account 30300      Paid in capital -Common Stock 90900 Stockholder\'s equity: Paid in capital Common Stock $2 par 900,000 authorized 120150 issued 116150 outstanding 232300 Paid in capital in excess of par common (280000+90900) 370900 Paid in capital-Treasury stock 4000 Total paid in capital 607200 Retained earning balance (108000+111000-121200) 97800 Less: Treasury stock (4000 shares @8) 32000 Stockholder\'s equity: 673000