Question
[The following information applies to the questions displayed below.] Refer to the following transactions. a. Sold 2,310 shares of $10.5 par value preferred stock at
[The following information applies to the questions displayed below.]
Refer to the following transactions. a. Sold 2,310 shares of $10.5 par value preferred stock at $13.50 per share.
b. Declared the annual cash dividend of $3.4 per share on common stock. There were 9,100 shares of $1 par value common stock issued and outstanding throughout the year.
c. Issued 2,300 shares of $6.5 par value preferred stock in exchange for a building when the market price of preferred stock was $13 per share.
d. Purchased 190 shares of preferred stock for the treasury at a price of $13.00 per share.
e. Sold 50 shares of the preferred stock held in treasury (see d) for $19.5 per share.
f. Declared and issued a 20% stock dividend on the $1 par value common stock when the market price per share was $46.
Required:
Part 1: Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus () sign and the amount in the appropriate column. Do not show items that affect net income in the retained earnings column.
Transaction | cash | other assets | liabilities | paid-in-capital | retained earnings | treasury stock | net income |
a | |||||||
b | |||||||
c | |||||||
d | |||||||
e | |||||||
f |
Part 2: Prepare the journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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