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The Shareholders Equity section the balance sheet of Chequessett Corporation is presented in the following table. Shareholders' Equity Preferred Stock, $25 par, 4.8%, cumulative, nonparticipating,
The Shareholders Equity section the balance sheet of Chequessett Corporation is presented in the following table.
Shareholders' Equity | |
Preferred Stock, $25 par, 4.8%, cumulative, nonparticipating, 10,000 shares issued and outstanding | $250,000 |
Common Stock, $1 Par, 500,000 shares issued and outstanding | 500,000 |
Paid-in Capital in Excess of Par - Preferred | 25,000 |
Paid-in Capital in Excess of Par - Common | 2,785,000 |
Retained Earnings | 12,700,000 |
Total Shareholders' Equity | $16,260,000 |
Instructions
Prepare journal entries for the following share transactions for Chequessett Corporation.
- Issued 250 shares of common for $10.50 per share.
- Issued a $10,000, 8% bond payable for $10,100 and gave as a bonus 5 shares of preferred stock, which at that time was selling for $27 per share.
- Issued 500 shares of common and 50 shares of preferred for a lump sum amounting to $6,500. The common had been selling at $10.80 per share and the preferred at $27 per share.
- Repurchased 200 shares of common stock for $10.75 per share.
- Repurchased 100 shares of common for $11 per share.
- Reissued 100 shares of treasury stock for $11.80 per share. Assume the Chequessett values the cost of its Treasury Stock using the first-in, first-out method.
- Reissued the remaining shares of treasury stock for equipment with a fair market value of $2,100.
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