2 2 0 1 7 | P A G E 2 | JOHN WILEY AND SONS, INC. 2 2...
4 . 2 4 . 2 0 1 7
| P a g e 2
| John Wiley and Sons, Inc.
Page: 88
Alignment modified
Dr. Income tax expense GAAP amount
Dr. Deferred tax liability Difference
Cr. Income tax payable IRS amount
Page: 98
If the remaining 6,000 shares are reissued for $8 per share:
Dr. Cash 44,000 48,000
Dr. Additional paid-in capital –treasury stock 4,000
Dr. Retained earnings 6,000 2,000
Cr. Treasury stock (6,000 × $9/share) 54,000
Par (or stated value) method. In this method, treasury stock is recorded at par
value and additional paid-in capital is debited for the amount in proportion to the original issue price.
Page: 99
The journal entry for the reacquisition of 10,000 $1 par shares (originally sold for $8 per share) for
treasury stock at $9 per share would be:
Dr. Treasury stock 10,000
Dr. Additional paid-in capital in excess of par
70,000
Dr. Retained earnings
10,000
Cr. Cash
90,000
If 4,000 treasury shares are reissued at $10 per share:
Dr. Cash 40,000
Cr. Treasury stock (4,000 × $9 $1/share) 4,000
Cr. Additional paid-in capital—treasury stock
in excess of par
36,000
Page: 101
Dr. Cash ($20/share × 1,000 shares) 20,000
Dr. Paid-in capital—stock options 4,000 6,000
Cr. Common stock ($8 × 1,000 shares) 8,000
Cr. Additional paid-in capital—common stock 16,000 18,000
([$20 – $4]
1,000 shares)
Page: 104
Journal entry for the 30% stock dividend (large stock dividend):
Dr. Retained earnings 10,000 30,000
Cr. Common stock dividend distributable 10,000 30,000
(100,000 shares × 10% 30% × $1 par/share)
Dr. Common stock dividend distributable 10,000 30,000
Cr. Common stock 10,000 30,000