Question

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.

Answer 1

The requirement of question is prepare journal entries for each of above transaction; It is assumed that par value of each share is $1

Step-by-step 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