Chapter 7 Journal Entries Flashcards
Retained Earnings Appropriation (Reverse when purpose of appropriation has occurred)
DR: Retained Earnings (unappropriated)
CR: Retained Earnings Appropriated for…
Eliminated Deficit in Retained Earnings Through Quasi-Reorganization
DR: Common Stock
CR: Retained Earnings [amount of deficit]
CR: APIC [plug]
Treasury Stock: Cost Method
Original Issue
DR: Cash
CR: C/S [par]
CR: APIC - C/S [FV-par]
Treasury Stock: Cost Method
Buy Back Above Issue Price
DR: Treasury Stock [amount paid]
CR: Cash
Treasury Stock: Cost Method
Reissue Above Cost
DR: Cash
CR: Treasury Stock [price repurchased at]
CR: APIC - T/S
Treasury Stock: Cost Method
Reissue Below Cost
DR: Cash
DR: APIC - T/S [eliminate]
DR: R/E [whatever APIC couldn’t cover]
CR: Treasury Stock [price repurchased at]
Treasury Stock: Par Value Method
Original Issue
DR: Cash
CR: C/S
CR: APIC - C/S
Treasury Stock: Par Value Method
Buy Back Above Issue Price
DR: Treasury Stock [par]
DR: APIC - C/S [selling price - par]
DR: R/E [plug]
CR: Cash
Treasury Stock: Par Value Method
Buy Back Below Issue Price
DR: Treasury Stock [par]
DR: APIC - C/S [selling price - par]
CR: Cash
CR: APIC - T/S [plug]
Treasury Stock: Par Value Method
Reissue Shares
DR: Cash
CR: Treasury Stock [par]
CR: APIC - C/S [plug]
Retirement of Treasury Stock: Cost Method
DR: Common Stock [par]
DR: APIC - C/S
DR: R/E
CR: Treasury Stock [reacquisition price]
Retirement of Treasury Stock: Par Value Method
DR: Common Stock
CR: Treasury Stock [par]
Donated Stock
DR: Donated Treasury Stock [FMV]
CR: APIC
Sell Donated Stock
DR: Cash
DR: APIC (if SP original FMV)
CR: Donated Treasury Stock [BV/original FMV]
Sale of Stock Subscriptions
DR: Subscriptions Receivable
CR: C/S Subscribed [par]
CR: APIC
