Accounting for stocks - Lecture notes Common stock/treasury stock/ dividends PDF

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info needed for final exam relating to common stock, treasury stock, and dividends...

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Accounting for stocks ● Assume Odessa Travel issues 1,000 shares of $0.01 par value common stock at $30 per share. Cash(1000 shares x $30)..........30,000 Common stock(1000 x $0.01)......10 Additional paid in Capital (difference).29,990 ● Treasury stock is when a company gets its own stock back Odessa Travel reissues (sells) the 100 shares of treasury stock for $35-they originally were purchased for $30 per share Cash(100 shares x $35).............3,500 Treasury stock(100 x $30)........3,000 Additional Paid in Cap………….500 Dividends ● Only need to journalize the declaration date and the payment date ○ Not the Record date!!!!! ● On March 15 Odessa Travel declares a $0.25 per share dividend on its 2,000 outstanding shares.***Declaration date*** ○ Dividends(2000 x $.25)................500 ■ Dividends Pay………………….500 ● The dividend declared is paid on april 15th ***Payment date*** ○ Dividends Pay…………..500 ■ Cash…………………..500...