On February 21, 2018 Osa Steel Works incorporated in the State of California and is authorized to

Question:

On February 21, 2018 Osa Steel Works incorporated in the State of California and is authorized to issue 50,000 $3 common shares.
1. The following stock transactions were made by Osa Steel during 2018. Prepare the necessary journal entries to record the transactions in the financial records of the company.
a) 28-Feb Osa sold 45,000 of the $3 shares at a market price of $14 per share.
b) 1-Aug Purchased 5,000 shares of its own $3 at $20 per share.
c) 1-Sep Sold 1,500 shares of treasury stock purchased on August 1 for $30 per share.
d) 21-Oct Sold 700 shares of treasury stock purchased on August 1 for $27 per share.
e) 1-Nov Sold 900 shares of treasury stock purchased on August 1 for $13,500.
f) 18-Nov Sold 600 shares of treasury stock purchased on August 1 for $9,600.
g) 15-Dec Retired 1,300 shares of treasury stock purchased on August 1.
2. Prepare the stockholders' equity section of Osa Steel Company as of December 31, 2018 including disclosure of all relevant information.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...