Question
On January 5, 2017, Nash Corporation received a charter granting the right to issue 4,800 shares of $100 par value, 8% cumulative and nonparticipating preferred
On January 5, 2017, Nash Corporation received a charter granting the right to issue 4,800 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 49,300 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Issued 20,400 shares of common stock at $16 per share. Feb. 1 Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: equipment with a fair value of $52,700; a factory building with a fair value of $175,000; and land with an appraised value of $292,000. July 29 Purchased 1,800 shares of common stock at $16 per share. (Use cost method.) Aug. 10 Sold the 1,800 treasury shares at $13 per share. Dec. 31 Declared a $0.50 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31 Closed the Income Summary account. There was a $190,000 net income.
Record the journal entries for the transactions listed above.
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