The Following Information Is Provided from the Forza Corporation's Accounting

question 61

Essay

The following information is provided from the Forza Corporation's accounting records.
1) Issued 2,500 shares of $1 par common stock at $23 a share.
2) Issued 7,500 shares of $1 par common stock in exchange for land valued at $65,000.
3) In order to prevent a hostile takeover the company reacquired the 7,500 shares for $20 per share as treasury stock.
4) The hostile takeover did not succeed, and the company reissued 5,500 of the treasury shares of $21 per share.
5) The remaining treasury shares were reissued for $22 per share and an additional 2,000 shares were issued at the same price.
Required:
Prepare the journal entries for the stock transactions, using the cost method assumption to account for the treasury stock.

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Definitions:

Trade

The act of buying, selling, or exchanging goods and services between parties within or across national borders.

Coffee

Coffee is a popular beverage made by brewing roasted and ground beans of the Coffea plant, famed for its stimulating effect due to caffeine content.

Exports

Commodities or services sent overseas from one country to another aimed at commerce or trade.

Imports

Goods and services brought into a country from abroad for sale, which can affect the domestic economy in terms of prices, jobs, and trade balances.