During the first year of operations, New York Corporation had the following transactions:
∙ Jan. 1 - Issued 50,000 shares of $1 par value common stock at $20 per share.
∙ May 24 - Reacquired 5,000 shares of common stock sold on Jan. 1 for $23 per share.
∙ Aug. 31 - Sold 500 shares of its treasury stock purchased on May 24 for $25 per share.
∙ Oct. 18 - The board of directors declared and distributed a 10% common stock dividend. The market price of the common stock was $26 per share at the time of the declaration.
∙ Nov. 24 - The board of directors declared a cash dividend of $0.50 per share payable to stockholders on December 8.
∙ Dec. 8 - Paid the cash dividends declared on November 24.
Required:
Prepare the journal entries for the above transactions. Omit explanations.

Question

Quizplus · Accepted Answer

The Answer of During the first year of operations, New York Corporation had the following transactions:
∙ Jan. 1 - Issued 50,000 shares of $1 par value common stock at $20 per share.
∙ May 24 - Reacquired 5,000 shares of common stock sold on Jan. 1 for $23 per share.
∙ Aug. 31 - Sold 500 shares of its treasury stock purchased on May 24 for $25 per share.
∙ Oct. 18 - The board of directors declared and distributed a 10% common stock dividend. The market price of the common stock was $26 per share at the time of the declaration.
∙ Nov. 24 - The board of directors declared a cash dividend of $0.50 per share payable to stockholders on December 8.
∙ Dec. 8 - Paid the cash dividends declared on November 24.
Required:
Prepare the journal entries for the above transactions. Omit explanations.

During the First Year of Operations, New York Corporation Had