HANDOUT 11 2 SOLUTION – STOCK TRANSACTIONS Prepare the journal entries required to record the following transactions and then post them to the related T-accounts: Strait Corp. sold shares of $ par value stock for $ per share on May , Year 1. + Cash (A) Common Stock (SE) + – – Additional Paid-in Capital (SE) + – On December , Year 1, Strait Corp. repurchased shares of its stock on the market when it was trading for $ per share. + Cash (A) + Treasury Stock (XSE) – – On December , Year 1, Strait Corp. sold of the treasury shares for $ each. + Cash (A) + Treasury Stock (XSE) – – Additional Paid-in Capital (SE) + –
HANDOUT 11 – 2 SOLUTION STOCK TRANSACTIONS Prepare the journal entries required to record the following transactions and then post them to the related T-accounts: Strait Corp. sold shares of $ par value stock for $ per share on May , Year 1. + Cash (A) – – Common Stock (SE) + – Additional Paid-in Capital (SE) + On December , Year 1, Strait Corp. repurchased shares of its stock on the market when it was trading for $ per share. + Cash (A) – + Treasury Stock (XSE) – On December , Year 1, Strait Corp. sold of the treasury shares for $ each. + Cash (A) – + Treasury Stock (XSE) – – Additional Paid-in Capital (SE) +
HANDOUTS%20Ch%2011%20and%2012%20questions%20and%20solutions.docx