Exercise 11-2 Sheridan Company had these transactions during the current period.

Question

Exercise 11-2 Sheridan Company had these transactions during the current period. June 12 Issued 84,000 shares of $1 par value common stock for cash of $315,000. July 11 Issued 3,400 shares of $102 par value preferred stock for cash at $107 per share. Nov. 28 Purchased 1,350 shares of treasury stock for $8,150.

Prepare the journal entries for the Sheridan Company transactions shown above.

On January 1, Marigold Corp. had 61,700 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.

Apr. 1 Issued 12,600 additional shares of common stock for $12 per share. June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. July 10 Paid the $1.50 cash dividend. Dec. 1 Issued 5,600 additional shares of common stock for $11 per share. Dec. 15 Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31.

Explanation / Answer

Sheridian Company Date Accounting titles & Explanations Debit Credit 12-Jun Cash 315,000 Common stock 84,000 paid in capital in excess of par-CS 231,000 11-Jul Cash (3400*107) 363800 preferred stock 346800 paid in capital in excess of par 17000 28-Nov Treasury stock 8,150 cash 8,150 Marigold Date Accounting titles & Explanations Debit Credit 15-Jun Cash dividend 111450 Dividends payable 111,450 (61,700+12600)*1.5 10-Jul Dividends payable 111,450 cash 111,450 15-Dec Cash dividend 135830 Dividends payable 135,830 (61,700+12,600+5,600)*1.70

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