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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 | |||||||
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