Question Details

Journalize the issuance of stock 



Ex. 1
On January 1, 2014, Raleish Corporation had $2,000,000 of $10 par value common stock outstanding that was issued at par and retained earnings of $1,000,000. The company issued 200,000 shares of common stock at $12 per share on July 1. On December 15, the board of directors declared a 15% stock dividend to stockholders of record on December 31, 2014, payable on January 15, 2015. The market value of Raleish Corporation stock was $15 per share on December 15 and $16 per share on December 31. Net income for 2014 was $500,000.

Instructions
(1)	Journalize the issuance of stock on July 1 and the declaration of the stock dividend on December 15.
(2)	Prepare the stockholders' equity section of the balance sheet for Raleish Corporation at December 31, 2014.



Ex. 2
On January 1, 2014, Triad Corporation had 60,000 shares of $1 par value common stock issued and outstanding. During the year, the following transactions occurred:
Mar.	1	Issued 25,000 shares of common stock for $550,000.
June	1	Declared a cash dividend of $2.00 per share to stockholders of record on June 15.
June	30	Paid the $2.00 cash dividend.
Dec.	1	Purchased 5,000 shares of common stock for the treasury for $22 per share.
Dec.	15	Declared a cash dividend on outstanding shares of $2.25 per share to stockholders of record on December 31.
Instructions
Prepare journal entries to record the above transactions.




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