affect s January 2 Issue 100,000 shares of common stock for $66 per share Februa
ID: 2575687 • Letter: A
Question
affect s January 2 Issue 100,000 shares of common stock for $66 per share February 14 Issue 56,000 shares of pr May 8 R May 31 Reissue 5,000 shares of treasury stock for $61 per share stock for S11 per share 10,000 shares of its own common per share |Declare a cash div dend on its common stock of $0 45 per share and a S28.0005% of per The d December 30 Pay the cash dividends declared on December 1 s payable on December 30 (Hint Dividends are not paid on treasury stock) the stockholders equity seenon (LO10-2. 10-3, 10-4, 10-5, 7) Award 0 out of 0 66 Problem 10-6A Part 1 3 2018Explanation / Answer
Dr Cash 6,600,000
Cr Common Stock 100,000
Cr Paid in Capital in Excess of Par Value, Common Stock 6,500,000
Dr Cash 616,000
Cr Preferred Stock 560,000
Cr Paid in Capital in Excess of Par Value, Preferred Stock 56,000
Dr Treasury Stock 560,000
Cr Cash 560,000
Dr Cash 305,000
Cr Common Treasury Stock 280,000
Cr Paid-in Capital on Sale of Treasury Stock 25,000
Dr Retained Earnings 70750
Cr Dividends Payable 70750
(100000-10000+5000 = 95000
95000*.45 = 42750+28000 = 70750)
Dr Dividends Payable 70750
Cr Cash 70750
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