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

Question

Diane's Designs has two classes of stock authorized: 8%, $10 par preferred and $1 par value common. The following transactions affect stockholders' equity during 2015, its first year of operations:

Diane's Designs has two classes of stock authorized: 8%, $10 par preferred and $1 par value common The following transactions affect stockholders' equity during 2015, its first year of operations January 1 Issue 200,000 shares of common stock for $15 per share February 6 Issue 1,000 shares of preferred stock for $11 per share October 10 Repurchase 10,000 shares of its own common stock for $18 per share November 12 Reissue 5,000 shares of treasury stock at $20 per share Record each of these transactions. (Omit the "$" sign in your response.) Date General Journal Debit 3000000 Credit Jan. 1, 2015 Cash 200,000 280,000 Common stock Additional paid-in capital Feb. 6, 2015 Cash 11000 1,000 10,000 Common stock Additional paid-in capital Oct. 10, 2015 Treasury stock 180000 Additional paid-in capital 180000 Nov. 12, 2015 Cash 100000 Treasury stock Additional paid-in capital 5,000 95,000

Explanation / Answer

Diane's Designs All Amounts in $ Journal Entries for recording transactions Date Particulars Debit Credit 01/01/2015 Cash 3000000 Common Stock 200000 Additional Paid-in Capital 2800000 06/02/2015 Cash 11000 Preferred Stock 10000 Additional Paid-in Capital 1000 10/10/2015 Treasury Stock 180000 Common Stock 180000 12/11/2015 Cash 100000 Treasury Stock 90000 Additional Paid-in Capital 10000

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