Question
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 420 shares of
Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2024, 420 shares of preferred stock and 5,200 shares of common stock have been issued. The following transactions affect stockholders equity during 2024:
March 1: Issue 2,300 shares of common stock for $54 per share.
May 15: Purchase 520 shares of treasury stock for $47 per share.
July 10: Resell 320 shares of treasury stock purchased on May 15 for $52 per share.
October 15: Issue 320 shares of preferred stock for $57 per share.
December 1: Declare a cash dividend on both common and preferred stock of $1.70 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)
December 31: Pay the cash dividends declared on December 1.
Donnie Hilfiger has the following beginning balances in its stockholders equity accounts on January 1, 2024: Preferred Stock, $420; Common Stock, $52; Additional Paid-in Capital, $82,000; and Retained Earnings, $32,900. Net income for the year ended December 31, 2024, is $13,200.
Record each of these transactions:
Record the issuance of 2,300 shares of common stock for $54 per share.
| Date | General Journal | Debit | Credit |
| March 1, 2024 | |||
Record the purchase of 520 shares of treasury stock for $47 per share.
| Date | General Journal | Debit | Credit |
| May 15, 2024 | |||
Record the resale of 320 shares of treasury stock purchased on May 15 for $52 per share.
| Date | General Journal | Debit | Credit |
| July 10, 2024 | |||
Record the issuance for 320 shares of preferred stock for $57 per share.
| Date | General Journal | Debit | Credit |
| October 15, 2024 | |||
Record the declaration of a cash dividend on both common and preferred stock of $1.70 per share to all stockholders. (Hint: dividends are not paid for on treasury stock)
| Date | General Journal | Debit | Credit |
| December 1, 2024 | |||
Record the entry on December 15, the date of the record.
| Date | General Journal | Debit | Credit |
| December 15, 2024 | |||
Record the payment of cash dividends cleared on December 1.
| Date | General Journal | Debit | Credit |
| December 31, 2024 | |||
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Expert Fraud Investigation A Step By Step Guide
Authors: Tracy Coenen
1st Edition
0470387963, 978-0470387962
