Explain the accounting treatment for each of the following.

a) Stock sales (for cash) and create a journal entry that shows the accounts debited and credited and a word or two that describes the amounts used.

b) Using the following information, allocate the proceeds of the sale to the two types of stock using the Proportionate method and prepare the journal entry to enter the transaction.

Common stock 2,000 shares in package with a par value of $1, fair market value of $200,000

Preferred stock 2,000 shares in package with a par value of $100. Fair market value of $300,000

Total proceeds from the sale = $600,000

c) Assume that only the fair market value of the common stock was determinable show how you would allocate the proceeds of the above sale to the two types of stock and prepare a journal entry to record the transaction.

d) Non-cash issuances, typically to purchase assets to include how the values for the assets issued and stock are determined.

e) Explain the accounting for the costs of issuing stock and prepare a journal entry assuming a firm issues 100 shares of $1 common stock for $5,000 and incurs selling costs of $500.

f) Explain the accounting for the conversion of preferred stock and create a journal entry that shows the accounts debited and credited and a word or two that describes the amounts used.

g) Explain the accounting for the repurchase of stocks (cost method)

h) Explain the account for the sale of Treasury Stock and create a journal entry that shows the accounts debited and credited and a word or two that describes the amounts used.

i) Explain the accounting for Treasury Stock retirement and create a journal entry that shows the accounts debited and credited and a word or two that describes the amounts used.