authorized to sell 1,000,000 shares of $10 par value common stock and 50,000 of
ID: 2387378 • Letter: A
Question
authorized to sell 1,000,000 shares of $10 par value common stock and 50,000 of $100 par value 6% preferred stock. company actually sold 550,00 shares of common stock @ 12 per share and 40,000 shares of preferred stock @ 110 per share. $550,000 of common stock sold 40,000 shares have been repurchased @ $60 per share and are currently being held in treasury to be used to meet future requirements of a stock option plan the company intends to implement.
prepare all jounal entries for all transactions
prepare stock holders equity section to reflect the transactions recorded
Explanation / Answer
Cash A/c.....Dr 660000 To common stock 550000 To paid-in capital 110000 Cash A/c.....Dr 4400000 To preferred stock 4000000 To paid-in capital 400000 Common stock A/c....Dr400000 Paid-in capital A/c....>Dr2000000 To cash 2400000 Happy to help
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