Treasury stock transactions | Accounting homework help

Pr. 15-143—Treasury stock transactions.
The original sale of the $50 par value common shares of Gray Company was recorded as follows:
Cash 290,000
Common Stock 250,000
Paid-in Capital in Excess of Par 40,000
Instructions
Record the treasury stock transactions (given below) under the cost method:
Transactions:
(a)Bought 300 shares of common stock as treasury shares at $62.
(b)Sold 80 shares of treasury stock at $60.
(c)Sold 40 treasury shares at $68.
Solution 15-143
DateAccount NameRefDebit Credit
a
 
b
 
c
Pr. 15-145—Equity transactions.
Foley Corporation has the following capital structure at the beginning of the year:
 
6% Preferred stock, $50 par value, 20,000 shares authorized, 
6,000 shares issued and outstanding$ 300,000
Common stock, $10 par value, 60,000 shares authorized, 
40,000 shares issued and outstanding400,000
Paid-in capital in excess of par 110,000
Total paid-in capital810,000
Retained earnings 440,000
Total stockholders’ equity$1,250,000
Instructions
(a)Record the following transactions which occurred consecutively (show all calculations).
1.A total cash dividend of $90,000 was declared and payable to stockholders of record. Record dividends payable on common and preferred stock in separate accounts.
2.A 10% common stock dividend was declared. The average market value of the common stock is $18 a share.
3.Assume that net income for the year was $150,000 (record the closing entry) and the board of directors appropriated $70,000 of retained earnings for plant expansion.
(b)Construct the stockholders’ equity section incorporating all the above information.
Solution 15-145
(a)
DateAccount NameRefDebit Credit
1
Show Computation for Transaction