Problem 13-06A a-b (Video)

Ayayai Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 888,000 shares of no-par common stock. The corporation assigned a $2.40 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders equity.

Preferred Stock		$100,000
Paid-in Capital in Excess of ParPreferred Stock		40,000
Common Stock		888,000
Paid-in Capital in Excess of Stated ValueCommon Stock		1,332,000
Treasury Stock (800 common shares)		8,800
Paid-in Capital from Treasury Stock		1,200
Retained Earnings		80,000
Accumulated Other Comprehensive Income		50,000

The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1,200 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 400 shares of treasury stock were sold for $14 per share. No dividends were declared in 2020.

Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)		Issuance of preferred stock for land.
(2)		Issuance of common stock for cash.
(3)		Purchase of common treasury stock for cash.
(4)		Sale of treasury stock for cash.

No. Account Titles and Explanation Credit Debit 140,000 1. Land Preferred Stock 100,000 Paid-in Capital in Excess of Par-Preferred Stock 40,000 2. Cash 2220000 Common Stock 888,000 Paid-in Capital in Excess of Stated Value-Commor 1,332,000 3. Treasury Stock 13200 Cash 13200 4. Cash 13600 Treasury Stock 13200 Paid-in Capital from Treasury Stock 400 Prepare the stockholders' equity section at December 31, 2020. (Enter the account name only and information provided in the question.) AYAYAI CORPORATION Balance Sheet (Partial)