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On January 1, 2019, Bartov Company issues 5,000 shares of $100 par value preferred stock at $250 cash per share. On March 1, the company

On January 1, 2019, Bartov Company issues 5,000 shares of $100 par value preferred stock at $250 cash per share. On March 1, the company repurchases 5,000 shares of previously issued $1 par value common stock at $83 cash per share.

a. Using the financial statement effects template, illustrate the effects of these two transactions.

Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital.

Balance Sheet Income Statement
Transaction Cash Asset + Noncash Asset = Liabilities + Contrib. Capital + Earned Capital - Contra Equity Revenues - Expenses = Net Income
1/1/19: Issued preferred stock. Answer + Answer = Answer + Answer + Answer + Answer Answer - Answer = Answer
3/1/19: Repurchase common stock. Answer + Answer = Answer + Answer + Answer + Answer Answer - Answer = Answer

b. Prepare the journal entries for the two transactions.

General Journal
Date Description Debit Credit
1/1/19 AnswerAdditional paid in capitalCashCommon stockTreasury stock Answer Answer
Preferred stock Answer Answer
AnswerAdditional paid in capitalCashCommon stockTreasury stock Answer Answer
3/1/19 AnswerAdditional paid in capitalCashCommon stockTreasury stock Answer Answer
AnswerAdditional paid in capitalCashCommon stockTreasury stock Answer Answer

c. Post the journal entries from b to the related T-accounts.

Cash
Answer Answer
Preferred Stock
Answer Answer

Treasury Stock
Answer Answer
Additional Paid in Capital
Answer Answer

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