Melvina Corporation has been authorized to issue 20,000 shares of $100 par value, 7%, noncumulative preferred stock
Question:
Preferred Stock $ .......................150,000
Paid-in Capital in Excess of Par Value—Preferred Stock .......20,000
Common Stock ......................2,000,000
Paid-in Capital in Excess of Stated Value—Common Stock .....1,520,000
Treasury Stock—Common (4,000 shares) ..............36,000
Retained Earnings ......................82,000
The preferred stock was issued for $170,000 cash. All common stock issued was for cash. In November 4,000 shares of common stock were purchased for the treasury at a per share cost of $9. No dividends were declared in 2012.
Instructions
(a) Prepare the journal entries for the following.
(1) Issuance of preferred stock for cash.
(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.
(b) Prepare the stockholders’ equity section of the balance sheet at December 31, 2012.
Common Stock
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Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
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Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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