Question
Irwin Corporation has been authorized to issue 20,800 shares of $100 par value, 10%, noncumulative preferred stock and 1,211,166 shares of no-par common stock. The
Irwin Corporation has been authorized to issue 20,800 shares of $100 par value, 10%, noncumulative preferred stock and 1,211,166 shares of no-par common stock. The corporation assigned a $2.97 stated value to the common stock. At December 31, 2015, the ledger contained the following balances pertaining to stockholders equity.
Preferred Stock | $124,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 18,900 | |
Common Stock | 1,211,166 | |
Paid-in Capital in Excess of Stated ValueCommon Stock | 1,964,100 | |
Treasury Stock (1,000 common shares) | 13,000 | |
Paid-in Capital from Treasury Stock | 500 | |
Retained Earnings | 82,700 |
The preferred stock was issued for land having a fair value of $142,900. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $13. In December, 500 shares of treasury stock were sold for $14 per share. No dividends were declared in 2015.
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