calculations must be shown to receive full credit. Journal entries must be in proper format.
1. Jupiter Co. reported the following information at January 1, 2016:
Common Stock, $1 par, 100,000 shares authorized, 50,000 shares issued
and outstanding
During 2016, the following transactions occurred:
June 10 Repurchased 1,000 shares of its outstanding common stock for $12 per share.
July 1 Sold 500 shares of treasury stock for $14 per share.
Sept. 1 Sold 500 shares of treasury stock for $9.50 per share.
Required:
Prepare the journal entries that Meyer needs to record for each of these 2016 transactions.
2. Madison Co. has issued 50,000 shares of common stock; 48,000 shares are outstanding and 2,000
shares are held as treasury stock. On August 15, 2016, Madison's board of directors declared a
cash dividend of $1.50 per share, payable on September 15, 2016, to stockholders of record on
August 31, 2016.
Required:
Prepare any necessary journal entries for August 15, August 31, and September 15.
