Stockholders Equity Transactions, Journal Entries, and T-Accounts

The stockholders equity of Fremantle Corporation at January 1 follows:

8 Percent preferred stock, $110 par value, 20,000 shares
authorized; 4,000 shares issued and outstanding	$440,000
Common stock, $4 par value, 10,000 shares
authorized; 40,000 shares issued and outstanding	160,000
Paid-in capital in excess of par value-Preferred stock	200,000
Paid-in capital in excess of par value-Common stock	800,000
Retained earnings	550,000
Total Stockholders' Equity	$2,150,000

The following transactions, among others, occurred during the year:

Jan.	1	Announced a 2-for-1 common stock split, reducing the par value of the common stock to $2 per share.
Mar.	31	Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $93,000) to common stock. Each $1,000 bond converted to 125 shares of common stock.
June	1	Acquired equipment with a fair market value of $60,000 in exchange for 500 shares of preferred stock.
Sept.	1	Acquired 10,000 shares of common stock for cash at $20 per share.
Nov.	21	Issued 5,000 shares of common stock at $23 cash per share.
Dec.	28	Sold 1,000 treasury shares at $24 per share.
	31	Closed net income of $107,000, to the Retained Earnings account.

Required

b. Prepare journal entries for the given transactions and post them to the T-accounts above in part a. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. General Journal Date Description Debit Credit Jan.01 (Memorandum) Common Stock split 2 for 1. Mar.31 0 $ Premium on Bonds Payable Common Stock To record conversion of bonds. Jun.01 Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment. Sept.01 Purchased treasury stock. Nov.21 Common Stock Issued common stock. Dec.28 Paid-in-Capital from Treasury Stock To record sale of treasury stock