https/ Problem 13 6A (Part Level Submlssihon Irwin Corporation has been authorie
ID: 2328640 • Letter: H
Question
https/ Problem 13 6A (Part Level Submlssihon Irwin Corporation has been authoried to issue 21.000 shares of $100 par value, 10 %, preferred stock and $2.80 stated value to the common Preferred Stock Paid-in Capital in Exce stock. At December 31, 2017, the ledger contained the following balances pertaining to hen signed a $130,000 1,128,400 8,400 ess of Par-Preferred Stock Paid-in Capital in Excess of Stated Vallue-Common Stodk Treasury Stock (700 common shares) Paid -in Capital from Treasury Stock Retained Earnings ,050 The preferred stock was issued for comon stock issued was for cash. le Novermber 1,050 shares of common stock were purchased tor the treasury at a per share cost of $12. In December, 350 shares of treasury stock were sold for $15 per share. No &vidends were dedared in 2017 land having a fair value of :44,000. (a) Bror answer is correct. 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 (4) Sale of treasury stock for cash cash, No. Account Titles and Explanation Debit CredtExplanation / Answer
Answers
Transaction
Accounts title
Debit
Credit
1
Land
$ 144,000.00
Preferred Stock [1300 shares x $100 par]
$ 130,000.00
paid in Capital in Excess of Par - Preferred Stock
$ 14,000.00
(Land acquired through issue of Preferred Stock)
2
Cash
$ 2,821,000.00
Common Stock
$ 1,128,400.00
paid in Capital in Excess of Stated value - Common Stock
$ 1,692,600.00
(Common Stock issued for cash)
3
Treasury Stock [1050 shares x $ 12]
$ 12,600.00
Cash
$ 12,600.00
(Purchase of treasury stock)
4
Cash
$ 5,250.00
Treasury Stock [350 shares x $ 12]
$ 4,200.00
Paid in Capital from Treasury Stock
$ 1,050.00
(Treasury stock re issued)
Balance Sheet (Partial)
31-Dec-17
STOCKHOLDERS' EQUITY
Paid in Capital
Capital Stock:
Common Stock
$ 1,128,400.00
Preferred Stock
$ 130,000.00
Total Capital Stock
$ 1,258,400.00
Additional Paid in Capital:
Paid in Capital in excess of Par - Preferred Stock
$ 14,000.00
Paid in Capital in excess of Stated Value - Common Stock
$ 1,692,600.00
Paid in Capital from Treasury Stock
$ 1,050.00
Total Additional Paid in Capital
$ 1,707,650.00
Total Paid in Capital
$ 2,966,050.00
Retained earnings
$ 82,000.00
Total (without Treasury Stock being considered)
$ 3,048,050.00
Less:
Treasury Stock
$ 8,400.00
Total Stockholder's Equity
$ 3,039,650.00
Transaction
Accounts title
Debit
Credit
1
Land
$ 144,000.00
Preferred Stock [1300 shares x $100 par]
$ 130,000.00
paid in Capital in Excess of Par - Preferred Stock
$ 14,000.00
(Land acquired through issue of Preferred Stock)
2
Cash
$ 2,821,000.00
Common Stock
$ 1,128,400.00
paid in Capital in Excess of Stated value - Common Stock
$ 1,692,600.00
(Common Stock issued for cash)
3
Treasury Stock [1050 shares x $ 12]
$ 12,600.00
Cash
$ 12,600.00
(Purchase of treasury stock)
4
Cash
$ 5,250.00
Treasury Stock [350 shares x $ 12]
$ 4,200.00
Paid in Capital from Treasury Stock
$ 1,050.00
(Treasury stock re issued)
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