80.2K

Verified Solution

Link Copied!

[The following information applies to the questions displayed below.] Tony and Suzie have purchased land for a new camp. Now they need money to bulld the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzle first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized \$1 par value common stock. When the company began on July 1, 2024, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2025 : November 5 Issue an additional 116,000 shares of common stoek for \$10 per share. November, 16 Purehase 11,600 shares of its own coman stoek (i.e.., treasury stoek) for $23 per share. November 24 Rese11 5,600 shares of treasury stock at $24 per share. December 1 Declare a cash dividend on its common stock of $13,000 ( $0.10 por share) to a11 stockholders of record on December 15 . December 20 pay the eash dividend declared on December 1. Decomber 30 Pay $840,000 for construction of now cabine and other facilities. The entire expenditure is recorded in the Buildings account. Journal entry worksheet 7 Record the issue of additional 116,000 shares of common stock for $10 per share. Note: Enter debits before credits. 1 Record the issue of additional 116,000 shares of common stock for $10 per share. 2 Record the purchase of 11,600 shares of its own common stock (i.e., treasury stock) for $23 per share. 3 Record the resale of 5,600 shares of treasury stock at $24 per share. 4 Record the declaration of $13,000 ( $0.10 per share) cash dividend on its common stock to all stockholders of record on December 15. 5 Record the entry on December 15 , the date of record. Note : = journal entry has been entered Record the payment of cash dividend declared on December 1. Record the payment of $840,000 for construction of new cabins and other facilities

Answer & Explanation Solved by verified expert

See Answer