Recording Common Stock Direct Retirement Acer Inc. issued 275,000 shares of $0.01 par value common stock for $15 per share on January 1, the day of its initial stock offering. Required a. Record entries for the following subsequent transactions assuming that the company's policy is to directly retire any reacquired shares. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). 1. On March 30, the company reacquires and retires 5,500 shares of common stock at $13.50 per share. Date March 30 Account Name Common Stock Paid-in Capital in Excess of Par-Common Stock Cash Dr. Cr. 55 0✔ 82445 0✔ 0 74250 ✔ 0 8250 ✔ Paid-in Capital-Retired Stock To record the re-purchase and retirement of stock. 2. On August 20, the company reacquires and retires 5,500 shares of common stock at $17.25 per share. Date Account Name Aug. 20 Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Retired Stock Retained Earnings Dr. Cr. 55 82445 0 0 0 OOOOO 0 0 0 % 0% 0 % 0 xxxx<< Cash To record the re-purchase and retirement of stock. 3. On December 1, the company issues 27,500 shares of common stock at $17.00 per share. Date Dec. 1 Cash Account Name Common Stock Paid-in Capital in Excess of Par-Common Stock To record issuance of stock. Dr. Cr. 467500 0✓ 0 275 0 467225
Recording Common Stock Direct Retirement Acer Inc. issued 275,000 shares of $0.01 par value common stock for $15 per share on January 1, the day of its initial stock offering. Required a. Record entries for the following subsequent transactions assuming that the company's policy is to directly retire any reacquired shares. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). 1. On March 30, the company reacquires and retires 5,500 shares of common stock at $13.50 per share. Date March 30 Account Name Common Stock Paid-in Capital in Excess of Par-Common Stock Cash Dr. Cr. 55 0✔ 82445 0✔ 0 74250 ✔ 0 8250 ✔ Paid-in Capital-Retired Stock To record the re-purchase and retirement of stock. 2. On August 20, the company reacquires and retires 5,500 shares of common stock at $17.25 per share. Date Account Name Aug. 20 Common Stock Paid-in Capital in Excess of Par-Common Stock Paid-in Capital-Retired Stock Retained Earnings Dr. Cr. 55 82445 0 0 0 OOOOO 0 0 0 % 0% 0 % 0 xxxx<< Cash To record the re-purchase and retirement of stock. 3. On December 1, the company issues 27,500 shares of common stock at $17.00 per share. Date Dec. 1 Cash Account Name Common Stock Paid-in Capital in Excess of Par-Common Stock To record issuance of stock. Dr. Cr. 467500 0✓ 0 275 0 467225
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Recording Common Stock Direct Retirement
Acer Inc. issued 275,000 shares of $0.01 par value common stock for $15 per share on January 1, the day of its initial stock offering.
Required
a. Record entries for the following subsequent transactions assuming that the company's policy is to directly retire any reacquired
shares.
• Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr.
answers blank (zero).
1. On March 30, the company reacquires and retires 5,500 shares of common stock at $13.50 per share.
Date
March 30
Account Name
Common Stock
Paid-in Capital in Excess of Par-Common Stock
Cash
Dr.
Cr.
55
0✔
82445
0✔
0
74250 ✔
0
8250 ✔
Paid-in Capital-Retired Stock
To record the re-purchase and retirement of stock.
2. On August 20, the company reacquires and retires 5,500 shares of common stock at $17.25 per share.
Date
Account Name
Aug. 20 Common Stock
Paid-in Capital in Excess of Par-Common Stock
Paid-in Capital-Retired Stock
Retained Earnings
Dr.
Cr.
55
82445
0
0
0
OOOOO
0
0
0 %
0%
0 %
0
xxxx<<
Cash
To record the re-purchase and retirement of stock.
3. On December 1, the company issues 27,500 shares of common stock at $17.00 per share.
Date
Dec. 1
Cash
Account Name
Common Stock
Paid-in Capital in Excess of Par-Common Stock
To record issuance of stock.
Dr.
Cr.
467500
0✓
0
275
0
467225
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