Question
Nash Company reported the following amounts in the stockholders equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (100,000 shares
Nash Company reported the following amounts in the stockholders equity section of its December 31, 2019, balance sheet. Preferred stock, 11%, $100 par (100,000 shares authorized, 26,000 shares issued) $2,600,000 Common stock, $1 par (1,000,000 shares authorized, 278,000 shares issued) 278,000 Additional paid-in capital-common 929,000 Retained earnings 1,502,000 Total $5,309,000 During 2020, Nash took part in the following transactions concerning stockholders equity. 1. Paid the annual 2019 dividend on preferred stock and a $0.50 per share dividend on common stock. These dividends had been declared on December 31, 2019. 2. Purchased 1,100 shares of its own outstanding common stock for $9 per share. Nash uses the cost method. 3. Reissued 1,100 treasury shares for land with an appraised value of $8,900. Nashs common shares were trading for $9.50 per share. 4. Issued 45,000 shares of common stock at $10 per share. 5. Declared and recorded a 2:1 stock split on the outstanding common stock when the stock is selling for $11 per share. 6. Declared the annual 2020 dividend on preferred stock and the $0.50 per share dividend on common stock. These dividends are payable in 2021. (a) Prepare journal entries to record the transactions described above. Assume transactions occurred in the order presented. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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