Exercise 11-2 Sagan Co. had these transactions during the current period. June 1

Question

Exercise 11-2 Sagan Co. had these transactions during the current period. June 12 Issued 80,000 shares of $1 par value common stock for cash of $300,00o. July 11 Issued 3,000 shares of $100 par value preferred stock for cash at $106 per share. Nov. 28 Purchased 2,000 shares of treasury stock for $9,000. Prepare the jounal entries for the Sagan Co. transactions shown above. (Record journal entries in the order presented in the problem. are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Version 4.24.6.2 ? 2000-201830h yieasons. Inc. All Rights Reserved. A Division of Johnwleyasons.inc. 702 PM

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit June 12 Cash 300000 Common Stock 80000 Paid in capital in excess of par value-Common stock 220000 (To record issue Common Stock) July 11 Cash (3000*106) 318000 Preferred Stock (3000*100) 300000   Paid in capital in excess of par value-Preferred stock 18000 (To record issue preferred Stock) Nov 28 Treasury Stock 9000 Cash 9000 (To record purchase treasury stock)

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