Question

On January 2, 2019, Frederick Corporation issued 18,000 shares of $10 par value common stock for $13 per share. On April 1, 2019, Alpha reacquired 1,500 of these shares when they were trading $16 per share. On August 1, 2019 Frederick reissued 800 shares of treasury stock at the going market rate of $19 per share. Use this information to prepare the General Journal entry (without explanation) for the August 1 transaction.

Answer 1

The Journal Entry with narration is shown below:-

Step-by-step explanation:

Data provided as per the question

Reissued shares = 800

Market rate per share = $19

Trading per share = $16

The Journal Entry is shown below:-

Cash Dr, $15,200

(800 × $19)

To treasury stock $12,800

(800 × $16)

To Paid-in capital $2,400

(800 × $3)

(Being cash is recorded)