at the end of 2013 Hayley corporation had the following corporation had the foll
ID: 2491854 • Letter: A
Question
at the end of 2013 Hayley corporation had the following corporation had the following equity accounts and balances:
Common stock , $10 par $800.00
Additional paid-in capital -common stock 200,000
retained earnings 279,000
During 2014, Haley engaged in the following tansactions involving its equity accounts:
A. Sold 5,000 shares of common stock for $19 per share.
b. sold 1,200 shares of 12%. $50 par preferred stock at $75 per share.
c. Declared and paid cash dividends of $22,000
D Repurchased 1,000 shares of treasury stock(common) for $24 per share.
E. Sold 300 of the treasury shares fro $26 per share.
Required: 1. Prepare the journal entries for Transactions a-e
2. assume the 2014 net income was $123,700. Prepare a statement of stockholders equity at December 31, 2014.
Date Account and Explanation Debit Credit 2014 (Record sale of common stock) (Record sale of preferred stock) (Record declaration and payment of dividends) (Record purchase of treasury shares) (Record reissue of treasury shares)Explanation / Answer
Date Particulars Debit Credit a Cash 95000 Common stock 50000 Additional paid in capital - common stock 45000 Common stock is credited with 5000 units x 10 par value Addictional paid in capital is credited with 5000 units x 9 premium b) Cash 90000 12 % Preffered stock 60000 Additional paid in capital - Preffered stock 30000 Preffered stock is credited with 1200 units x 50 par value Addictional paid in capital is credited with 1200 units x 25 premium c) Cash Dividends 22000 Cash 22000 Cash dividend declared and paid d) Treasury Stock (common) 24000 Cash 24000 Re purchased 1000 common ctock shares at 24 each e) Cash 7800 Additional paid in capital - Treasury stock 600 Treasury Stock (common) 7200 Treasury stock were purchased for 24 and sold for 26 additional paid in capital is credited with 300 shares x 2 excess recovered treasury stock is credited with 300 shares x 24 repurchase price
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