Question
Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during 2024,
Tennis Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during 2024, its first year of operations:
January 2 Issue 120,000 shares of common stock for $53 per share.
February 14 Issue 43,000 shares of preferred stock for $13 per share.
May 8 Purchase 12,000 shares of its own common stock for $43 per share.
May 31 Resell 6,000 shares of treasury stock for $48 per share.
December 1 Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.)
December 30 Pay the cash dividends declared on December 1.
Required: 1. Record each of these transactions.
Journal entry worksheet Record the issuance of 120,000 shares of common stock for $53 per share. Note: Enter debits before credits. Journal entry worksheet 4567 Record the issuance of 43,000 shares of preferred stock for $13 per share. Note: Enter debits before credits. Journal entry worksheet Record the purchase of 12,000 shares of its own common stock for $43 per share. Note: Enter debits before credits. Journal entry worksheetStep by Step Solution
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