On January 1, 2012, Snow Company was authorized to issue 100,000 shares of common stock , par

Question:

On January 1, 2012, Snow Company was authorized to issue 100,000 shares of common stock, par value $10 per share, and 10,000 shares of 8% preferred stock, par value $20 per share. Record the following transactions for 2012:

a. Issued 70,000 shares of common stock at $25 per share.

b. Issued 8,000 shares of preferred stock at $30 per share.

c. Reacquired 5,000 shares of common stock at $20 per share.

d. Reissued 2,000 shares of treasury stock for $46,000.

e. Declared a cash dividend sufficient to meet the current-dividend preference on preferred stock and pay common shareholders $1 per share.

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... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... 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,...