Diane\'s Designs has two classes of stock authorized: 8%, $10 par value preferre

Question

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations:

January 1 Issue 200,000 shares of common stock for $13 per share.

February 6 Issue 900 shares of preferred stock for $14 per share.

October 10 Repurchase 8,000 shares of its own common stock for $18 per share.

November 12 Reissue 4,000 shares of treasury stock at $22 per share.

Record each of these transactions

Explanation / Answer

1-Jan Cash 2600000 =200000*13     Common Stock 200000 =200000*1     Paid in capital in excess of par-Common Stock 2400000 6-Feb Cash 12600 =900*14     Preferred Stock 9000 =900*10     Paid in capital in excess of par-Preferred Stock 3600 10-Oct Treasury stock 144000 =8000*18         Cash 144000 12-Nov Cash 88000 =4000*22     Treasury stock 72000 =4000*18     Paid in capital-Treasury stock 16000

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