Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, an

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.) View transaction list Journal entry worksheet 2 3 4. Issues 100,000 shares of common stock for $34 per share. Note: Enter debits before credits. Date General Journal Debit Credit January 02, 2018

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit jan 02,2018 Cash a/c 3400000     Common stock a/c 100000      Paid in capital in excess of par value-common stock 3300000 (To record issue of common stock) Feb 6 Cash a/c (2900*12) 34800     Preferred stock a/c (2900*10) 29000     Paid in capital in excess of par value-preferred stock 5800 (To record issue of preferred stock) sep 10 Treasury stock a/c (10000*39) 390000      Cash a/c 390000 (To record stock repurchased) Dec 15 Cash a/c (5000*44) 220000      Treasury stock a/c (5000*39) 195000      Paid in capital from sale of treasury stock (5000*5) 25000 (To record reissue of treasury stock)

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