Question
Teal Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet. Preferred stock, 9%, $100 par (10,000 shares
Teal Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet.
Preferred stock, 9%, $100 par (10,000 shares authorized, 2,100 shares issued) $210,000
Common stock, $5 par (99,000 shares authorized, 19,800 shares issued) 99,000
Additional paid-in capital 137,000
Retained earnings 410,000
Total $856,000
During 2017, Teal took part in the following transactions concerning stockholders equity.
1. Paid the annual 2016 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.
2. Purchased 1,900 shares of its own outstanding common stock for $39 per share. Teal uses the cost method.
3. Reissued 700 treasury shares for land valued at $31,500.
4. Issued 530 shares of preferred stock at $105 per share.
5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $47 per share.
6. Issued the stock dividend.
7. Declared the annual 2017 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.
Prepare journal entries to record the transactions described above
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