Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, an
ID: 2512609 • Letter: F
Question
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2018, its first year of operations:
January 2 Issues 100,000 shares of common stock for $34 per share.
February 6 Issues 2,900 shares of 8% preferred stock for $12 per share.
September 10 Repurchases 10,000 shares of its own common stock for $39 per share.
December 15 Reissues 5,000 shares of treasury stock at $44 per share.
Required:
Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1 Issues 100,000 shares of common stock for $34 per share.
2 Issues 2,900 shares of 8% preferred stock for $12 per share.
3 Repurchases 10,000 shares of its own common stock for $39 per share.
4 Reissues 5,000 shares of treasury stock at $44 per share.
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Jan 2 Cash (100000*34) 3400000 Common stock (100000*1) 100000 Paid in capital in excess of par value-Common stock 3300000 (To record issue common stock) Feb 6 Cash (2900*12) 34800 Preferred stock (2900*10) 29000 Paid in capital in excess of par value-Preferred stock 5800 (To record issue preferred stock) Sep 10 Treasury stock (10000*39) 390000 Cash 390000 (To record stock repurchased) Dec 15 Cash (5000*44) 220000 Treasury stock (5000*39) 195000 Paid in capital from sale of treasury stock (5000*5) 25000 (To record reissue treasury stock)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.