Mu or League poure las ivo desses o stock uulhor ees. 6%, 10 d\' ure erted end 5

Question

Mu or League poure las ivo desses o stock uulhor ees. 6%, 10 d' ure erted end 5 pu' value our mon The follow ng tarisacions unect stockholders ecut du' rig 2018. s first year of opera ons 2Issue no d00 shares of common sock for S64 par share Februery 14 Issue 54,000 shares ef prefered stock for 512 per share Mey 3 Repurchese 11,000 shares of rts own ccmmon stock for $54 per share. May 31 Reksue 5,500 shares of treasurynck for $59 per share December 1 Dedore a cos d vidend on its common stock o S070 per share onc a December 30 Pay the cash divdends declared on December 1 32.400 5% of por volue cos divdend on its prerer ed stock poyoble to o stockholders of ecord on December 15. The d idend is poyable on ecer ber 30 Hi t D dends are noi pod o treasury stock Required informanon 0.58 points equired: Record each of these transactlons. (f no entry is required for a particular transaction, select "No Journal entry required" In the first account fleld.) Wow transaction lst 1 cuc 110,010 shares of common stack for $04 per 12 per Issue 54,000 hares of preferred stock ro share 3 Repurchasa 11,000 sharas of its own common stock for 554 per share. Credit Reissue 5,500 shares of treasury stock for 59 per 4 5 Record the declaraton of cash dividends ecord the entry on the date of record

Explanation / Answer

no Accounting titles & Explanations Debit Credit 2-Jan Cash (110000*64) 7040000 Common stock (110000*1) 110000 paid in capital in excess of par -CS 6930000 14-Feb Cash (54000*12) 648000 preferred stock (54000*10) 540000 paid in capital in excess of par -PS 108000 8-May Treasury stock 594000 Cash (11000*54) 594,000 31-May Cash (5,500*59) 324500 Treasury stock (5500*54) 297000 paid in capital in excess of par TS 27500 1-Dec Retained earnings 105,550 Dividends payable-CS (104,500*.70) 73150 Dividends payable -PS 32,400 31-Dec Dividends payable-CS (104,500*.70) 73,150 Dividends payable -PS 32,400 Cash 105,550 (combine the two dividends account if required) Balance sheet Stockholders Equity 6%,$10 par preferred 54,000 shares issued 540000 Common stock $1 par value 110,000 shares issued 110,000 Addittional paid in capital - 7065500 total paid in capital 7715500 Retained earnings 378450 Treasury stock -297,000 total stockholders Equity 7796950

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