Question Details

Journalize the transactions for Bennett Corporation


1
Bennett Corporation is authorized to issue 1,000,000 shares of $1 par value common stock.
During 2008, the company has the following stock transactions.
Jan. 15 Issued 500,000 shares of stock at $7 per share.
Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share.
Instructions
Journalize the transactions for Bennett Corporation.


2
An inexperienced accountant for Duran Corporation made the following entries.
July 1 Cash..................................................................................... 170,000
Common Stock............................................................ 170,000
(Issued 20,000 shares of common stock,
par value $6 per share)
Sept. 1 Common Stock..................................................................... 36,000
Retained Earnings................................................................ 24,000
Cash ............................................................................ 60,000
(Purchased 4,000 shares issued on July 1 for the
treasury at $15 per share)
Instructions
On the basis of the explanation for each entry, prepare the entry that should have been made for
the transactions.



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