Question
A company has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during Year
A company has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during Year 1, its first year of operations:
January | 2 | Issues 100,000 shares of common stock for $29 per share. | ||
February | 6 | Issues 2,400 shares of 9% preferred stock for $11 per share. | ||
September | 10 | Purchases 11,000 shares of its own common stock for $34 per share. | ||
December | 15 | Resells 5,500 shares of treasury stock at $39 per share. |
Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
a.Record the issuance of 100,000 shares of common stock for $29 per share.
b.Record the issuance of 2,400 shares of 9% preferred stock for $11 per share.
c.Record the purchase of 11,000 shares of its own common stock for $34 per share.
d.Record the resale of 5,500 shares.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started