Problem 1

During 2012 S made several treasury stock transactions. For each of the following give the entry(s) that S would have made.S uses the cost method and the par value of common stock is $10.

a. On February 1st S purchased in the stock market 2000 shares of their $10 par value stock. They paid $15 per share.

b. On March 1, S reissued 600 shares of its common stock at $20 per share.

c. On June 2, S reissued another 300 shares of its common stock at $20 per share. d. On July 1st, S reissued the remaining shares of its treasury stock at $11 per share Required: Give necessary entries for each event.

Problem 2

a. On January 5th, S issued a property dividend. Investments (stock in the Duh Company) comprising of 1000 shares was issued. The stock has a fair market value of $25 per share. The stock cost S $20 per share. They issued the Duh stock one month later. Prepare the entry.

b. On May 15th, S issued 5,000 shares of cumulative, 10% preferred stock, with a par value of $100 for $112 per share. Prepare the entry.

c. A subsidiary of S had outstanding, at the end of the year, 10,000 shares of common stock outstanding and 5,000 shares of non-cumulative/non-participating preferred stock. S wants to issue cash dividends totaling $80,000. Calculate how much goes to preferred stock holders and common stock holders.