My Institution Co Chapter 11 Ho ACC 111:-Principles of Accounting 1 -Section 06

Question

My Institution Co Chapter 11 Ho ACC 111:-Principles of Accounting 1 -Section 06 Fall 2017 myBusinessCourse sinessCourse Stockholders' Equity: Transactions and Balance Sheet Presentation Menu The stockholders' equity accounts of Windham Corporation at January 1 appear below: 8 Percent preferred stock, $25 par value, 50,000 shares authorized; 6,800 shares issued and outstanding Common stock, $10 par value, 200,000 shares authorized; 170,000 50,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings 500,000 68,000 200,000 270,000 During the year, the following transactions occurred: Issued 35,000 shares of common stock for $17 cash per share. Purchased 10,000 shares of common stock as treasury stock at $19 per share. Jan. 10 23 Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 per share. July 15 Issued 3,500 Nov. 15 Sold 2,000 of the treasury shares acquired January 23 for $24 per share. Dec. 31 Closed the net income of s59,000 to the Retained Earnings account. Required shares of preferred stock in exchange for equipment with a fair market value of $128,000. ybusinesscourse.com/platform/mod/quizjattempt.php?attempt-15

Explanation / Answer

Journal entries

General ledger

Windham Corporation General journal Date Account Title Debit Credit Jan.10 Cash 595000 Common stock 350000 Additional paid in capital - Common stock 245000 (To record issue of 35,000 shares of common stock ) Jan.23 Treasury stock 190000 Cash 190000 (To record purchase of 10,000 shares of treasury stock) Mar.14 Cash 105000 Treasury stock 95000 Additional paid in capital - Treasury stock 10000 (To record sale of 5,000 shares of treasury stock) July.15 Equipment 128000 Prefered stock 87500 Additional paid in capital - Preferred stock 40500 (To record issue of 3,500 preferred stock for pruchase of equipment) Nov.15 Cash 48000 Treasury stock 38000 Additional paid in capital - Treasury stock 10000 (To record sale of 2,000 shares of treasury stock) Dec.31 Income summary 59000 Retained earnings 59000 (To record closing of net income to retained eanings )

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