The document provides information about authorized shares and transactions requiring journal entries. It states that the authorized shares are 219,000 and shares issued are 149,000. After a share buy back, shares outstanding are 129,000. It also lists two transactions requiring journal entries: 1) The company issued 51,000 shares at $48 per share, with a par value of $5 per share. This requires a debit to cash and credits to common stock and additional paid-in capital. 2) The company bought back 3,000 shares at $50 per share, requiring a debit to treasury stock and a credit to cash.
Determine the authorized shares- Prepare the journal entry required fo.docx
1. Determine the authorized shares.
Prepare the journal entry required for each of these transactions. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
1. Determine the authorized shares.
Solution
1.
Authorized Shares = 219,000
Shares Issued = 149,000
Shares Outstanding after buy back = 129,000 (149,000-20,000)
2.
Sl.No. Account Titles Debit Credit
a. Cash(51,000*48) 2,448,000
Common Stock (51,000*5) 255,000
Additional Paid-In Capital 2,193,000
b. Treasury Stock (3,000*50) 150,000
Cash 150,000
