hd ai (acc 114/121) Question 1 Irwin Corporation has been authorized to issue 20

Question

hd ai (acc 114/121) Question 1 Irwin Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stockholders equity stock and 888,000 shares of no-par common stock. The Preferred Stock $100,000 40,000 888,000 1,332,000 6,600 Paid-in Capital in Excess of Par-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (600 common shares) Paid-in Capital from Treasury Stock Retained Earnings The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 900 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 300 shares of treasury stock were declared in 2017. were sold for $14 per share. No dividends Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Issuance of preferred stock for land. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. (4) Sale of treasury stock for cash. Debit E2010-04-19.073617.8 s CH12 pdt

Explanation / Answer

No Account titles and Explanations Debit Credit 1) Land 140,000 preferred stock 100,000 paid in capital in excess of par-preferred stock 40,000 2) Cash 2,220,000 common stock 888,000 paid in capital in excess of stated value-common stock 1,332,000 3) Treasury stock 99,000 cash (900*11) 99,000 4) Cash (300*14) 4200 Treasury stock 3300 paid in capital from treasury stock 900 Balance sheet (partial) As on december 312017 Stockholders Equity paid in capital capital stock preferred stock 20,000 authorized shares , 1000 shares issued 100000 at $100 par common stock 888,000 authorized shares of no par ,370,000 shares 888,000 issued and outstanding at no par total capital stock 988,000 Addittional paid in capital in excess of par value-preferres tock 40,000 in excess of stated value-common stock 1,332,000 paid in capital from treasury stock 900 total addittional paid in capital 1,372,900 total paid in capital 2,360,900 Add:Retained earnings 80,000 total paid in capital & retained earnings 2,440,900 less:Treasury stock -6,600 Stockholders Equity 2,434,300

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