Question 5 No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. SHOW LIST

Question

Question 5

No.

Account Titles and Explanation

Debit

Credit

1.

2.

3.

4.

SHOW LIST OF ACCOUNTS

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Question 5

Irwin Corporation has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation assigned a $2.70 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders’ equity.
Preferred Stock $120,000 Paid-in Capital in Excess of Par—Preferred Stock 22,000 Common Stock 1,004,400 Paid-in Capital in Excess of Stated Value—Common Stock 2,715,600 Treasury Stock (720 common shares) 7,920 Paid-in Capital from Treasury Stock 1,080 Retained Earnings 82,500
The preferred stock was issued for land having a fair value of $142,000. All common stock issued was for cash. In November, 1,080 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 360 shares of treasury stock were sold for $14 per share. No dividends were declared in 2017.

Explanation / Answer

a) Journal Entries (Amounts in $)

b) IRWIN CORPORATION

Balance Sheet (Partial)

December 31, 2017 (Amounts in $)

No. Account Titles and Explanation Debit Credit 1 Land 142,000 Preferred Stock 120,000 Paid-in Capital in Excess of Par Value-Preferred Stock 22,000 2 Cash 3,720,000 Common Stock 1,004,400 Paid-in Capital in Excess of Stated Value-Common Stock 2,715,600 3 Treasury Stock (1,080 shares*$11) 11,880 Cash 11,880 4 Cash (360 shares*$14) 5,040 Treasury Stock (360 shares*$11 per share) 3,960 Paid-in Capital from Treasury Stock (360 shares*$3) 1,080

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