Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show the steps on how you got the answers for each journal entry EQUITY TRANSACTIONS Carolyn Company listed the following items on Dec 31,

Please show the steps on how you got the answers for each journal entry

EQUITY TRANSACTIONS
Carolyn Company listed the following items on Dec 31, 2012:
Marletable Securities 33,000
Preferred stock $100 par (1,000 shares outstanding) 100,000
Common stock, $10 par (40,000 shares outstanding) 400,000
Paid in capital in excess of par, common stock 210,000
Paid in capital in excess of par, preferred stock 20,000
Retained Earnings 270,000
Record the following transactions:
5-Feb Purchased 100 shares of the company's common stock and placed in treasury.
The price was $80 per share.
1-Mar The 100 shares of treasury stock purchased on Feb 5 were reissued for
$92 per share.
5-Mar Declared a property dividend in Marketable Securities. The securities (which
have a book value of $33,000) have a current value of $40,000.
5-Apr Paid the property dividend
6-Jul Declared a $32,000 cash dividend on common stock, to be paid on Aug 17
17-Aug Paid the cash dividend
15-Oct Declared a 15% stock dividend on common stock to be issued on Dec 3. The current
market price is $25 per share. (Hint: There are 40,000 shares outstanding)
3-Dec Issued the stock dividend.
15-Dec Issued a 2 for 1 stock split on the preferred stock (Hint: There are 1,000 shares
outstanding).
18-Dec Issued for $730,000 bonds wthat had a face value of $700,000. Each $1,000 bond had
10 detachable stock warrant. The warrants had a fair value of $37,500 and the bonds
without the warrant had a fair value of $712,500.
20-Dec Issued 1,500 shares of preferred stock for $155 per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Making Accountability Work Dilemmas For Evaluation And For Audit

Authors: Marie-Louise Bemelmans-Videc, Jeremy Lonsdale, Burt Perrin

1st Edition

1412865557, 978-1412865555

More Books

Students also viewed these Accounting questions