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31 August, 04:53

During 2019, Globe Life Corporation had following transactions affecting stockholders' equity: a. Feb. 1 Repurchased 230 shares of the company's own common stock at $22 cash per share. b. Jul. 15 Sold 130 of the shares purchased on February 1 for $23 cash per share. c. Oct. 1 Sold 100 of the shares purchased on February 1 for $21 cash per share.

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  1. 31 August, 05:37
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    The requirement of question is prepare journal entries for each of above transaction; It is assumed that par value of each share is $1

    Explanation:

    Feb 1.

    Common Stocks 230*1 Dr.$230

    Paid in capital in excess of par 230 * (22-1) Dr.$4,830

    Cash 230*22 Cr.$5,060

    b. Jul 15

    Cash 130*23 Dr.$ 2,990

    Common Stocks 130*1 Cr.$130

    Paid in capital in excess of par 130 * (23-1) Cr.$2,860

    c. Oct 1

    Cash 100*21 Dr.$2,100

    Common Stocks 100*1 Cr.$100

    Paid in Capital in excess of par 100 * (21-1) Cr.$2,000
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