Accounting for Treasury Stock

On August 19, Portland Corporation repurchases 5,000 shares of its outstanding common stock for $11 per share. On October 31, Portland sells 2,500 shares of treasury stock for $14 per share. Any additional sales of treasury stock during the year were sold for $6 per share. On December 31, Portland had no remaining treasury stock.

Required:

Prepare the necessary journal entries to record any transactions associated with treasury stock. If an amount box does not require an entry, leave it blank.

Pumpkin Accounting Corp. began the year with 1,000,000 authorized and 206,000 issued and outstanding $10 par common shares. During the year, Pumpkin entered into the following transactions:

1. Declared a $0.40 per-share cash dividend on March 10.
2. Paid the $0.40 per-share dividend on April 10.
3. Repurchased 8,000 common shares at a cost of $24 each on May 2.
4. Sold 3,000 unissued common shares for $26 per share on June 9.
5. Declared a $0.55 per-share cash dividend on August 10.
6. Paid the $0.55 per-share dividend on September 10.
7. Declared and paid a 10% stock dividend on October 15 when the market price of the common stock was $28 per share.
8. Declared a $0.60 per-share cash dividend on November 10.
9. Paid the $0.60 per-share dividend on December 10.

referred Dividends

Prestige Investments had the following preferred stock outstanding at the end of a recent year:

$25 par, 10%	6,000 shares
$38 par, 8%, cumulative	11,000 shares
$50 par, 12%, cumulative, convertible	2,000 shares
$80 par, 11%, nonparticipating	15,000 shares

Required:

1. Determine the amount of annual dividends on each issue of preferred stock and the total annual dividend on all four issues.

Issue 1 ($25 par, 10%) of preferred stock	$fill in the blank 1
Issue 2 ($38 par, 8%, cumulative) of preferred stock	fill in the blank 2
Issue 3 ($50 par, 12%, cumulative, convertible) of preferred stock	fill in the blank 3
Issue 4 ($80 par, 11%, nonparticipating) of preferred stock	fill in the blank 4
Total annual dividend	$fill in the blank 5

2. Calculate what the amount of dividends in arrears would be if the dividends were omitted for 1 year. $fill in the blank 6

Accounting for Shares

Kress Products' corporate charter authorized the firm to sell 800,000 shares of $10 par common stock. Kress sold 224,600 shares and reacquired 1,650 of those shares. The reacquired shares were held as treasury stock. Later Kress sold an additional 16,300 shares and purchased 3,100 more treasury shares.

Required:

Determine the number of issued and outstanding shares.

Issued shares	fill in the blank 1 shares
Outstanding shares	fill in the blank 2 shares