Question

Marin Corporation is authorized to issue 1,040,000 shares of $1 par value common stock.During 2025,the company has the following stocktransactions

Jan. 15 Issued 728.000 shares of stock at$7 per share
Sept. 5 Purchased 20.800 shares of common stock for the treasury at $8 per share
Dec.6 Declared a $0.50 per share dividend to stockholders of record on December 20, 2025, payable January 3, 2026

Journalize the transactions for Marin Corporation.

Answer 1

The stock transactions of Marin Corporation include issuing shares, purchasing treasury stock, and declaring a dividend. Journal entries for these transactions are made accordingly, considering the number of shares and the price or rate per share for each transaction.

Step-by-step explanation:

To journalize the stock transactions for Marin Corporation, we need to record each event in the correct accounting period and with the appropriate entries. On January 15, when Marin issued shares, the stock issuance must be recorded. On September 5, the purchase of treasury stock was noted. Finally, the declaration of a dividend on December 6 must be documented, though the actual payment of the dividend takes place in the next accounting period.

Here are the journal entries for each transaction:

• January 15: Dr. Cash $5,096,000 (728,000 shares x $7 per share); Cr. Common Stock $728,000 (728,000 shares x $1 par value); Cr. Paid-in Capital in Excess of Par Value, Common Stock $4,368,000 (728,000 shares x ($7 - $1)).
• September 5: Dr. Treasury Stock $166,400 (20,800 shares x $8 per share); Cr. Cash $166,400.
• December 6: Dr. Retained Earnings $364,000 (728,000 shares x $0.50 per share - shares held in the treasury are not considered); Cr. Dividends Payable $364,000.