CALCULATOR FULL SCREENPRINTER VERSION BACK NEXT Problem 13-06A a-b (Video) Marig
ID: 2330365 • Letter: C
Question
CALCULATOR FULL SCREENPRINTER VERSION BACK NEXT Problem 13-06A a-b (Video) Marigold Corporation corporation assigned a $2.50 stated value to the common stock. has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,020,000 shares of no-par common stock. The At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock $130,000 10,000 1,020,000 2,244,000 12,100 1,650 84,500 65,000 Treasury Stock (1,100 common shares) Paid-in Capital from Treasury Stock Retained Earnings Accumulated Other Comprehensive Income The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1,650 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 550 shares of treasury stock were sold for $14 per share. No dividends were declared in 2020. it account titles are automatically indented when amount is entered. Do not indent manually,) Prepare the journal entries for the: (Cred (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. DebitCredit No. Account Titles and ExplanationExplanation / Answer
Answer:
No
Account Titles & Explanation
DEBIT
CREDIT
-1
Land
$140,000
Preferred Stock
$130,000
Paid-in Capital in Excess of Par Value-Preferred Stock
$10,000
(To record the issue of preferred stock in exchange of land)
-2
Cash
$3,264,000
Common Stock
$1,020,000
Paid-in Capital in Excess of Stated Value-Common Stock
$2,244,000
(To record the issue of common stock in exchange of cash)
-3
Treasury Stock (1650*11)
$18,150
Cash
$18,150
(to record the purchase of treasury stock)
4
Cash (550*14)
7700
Treasury Stock (1650*11)
$6,050
Paid-in Capital in Excess of Stated Value-Treasury stock (550*3)
$1,650
(to record Sell of treasury stock)
2
Stockholders' equity
Paid-in capital
8% Preferred stock,100.00 Non cumulative,21000
shares authorized and 1300 issued and outstanding
130,000
Common stock
Authorized: 1020000 No Par, $2.5 Stated Value. Issued 409100 share and 408000 outstanding
1,020,000
Total capital stock
1,150,000
Additional paid-in capital
In excess of par value-preferred stock
10,000
In excess of stated value-common stock
2244000
From treasury stock-common
1650
Total additional paid-in capital
2,255,650
Total paid-in capital
3,405,650
Retained earnings
84500
Accumulated other corehensive income
65000
Total paid-in capital and retained
earnings
3,555,150
Less
Treasury stock
-12100
Total stockholders' equity
3,543,050
No
Account Titles & Explanation
DEBIT
CREDIT
-1
Land
$140,000
Preferred Stock
$130,000
Paid-in Capital in Excess of Par Value-Preferred Stock
$10,000
(To record the issue of preferred stock in exchange of land)
-2
Cash
$3,264,000
Common Stock
$1,020,000
Paid-in Capital in Excess of Stated Value-Common Stock
$2,244,000
(To record the issue of common stock in exchange of cash)
-3
Treasury Stock (1650*11)
$18,150
Cash
$18,150
(to record the purchase of treasury stock)
4
Cash (550*14)
7700
Treasury Stock (1650*11)
$6,050
Paid-in Capital in Excess of Stated Value-Treasury stock (550*3)
$1,650
(to record Sell of treasury stock)
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