M Inbox ()- sanche C ONot Secure eztonteducation.conrmten?--0.588541808003981512
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M Inbox ()- sanche C ONot Secure eztonteducation.conrmten?--0.588541808003981512606445610 , January 2 lssue 120000 shares of February 54 Issue 40 000 shares of preferred May B Repurchase 12.000 shares of s May 31 Reissue 6,000 shanes of treasury stock for $45 per shae per share ovidend on ts common stock ef $0.25 per shase anda S,000 ofor value cash dvidend on is petened shock December 30 Pay the cash dividends declared on December t 1. Recond each of those transactions (If no entry is equired for apartioular trensaction, select "No joumal entry equired" in the irst t 2018 Tesury ook 4 May 31. 2018 CashExplanation / Answer
Answer:
Date
Description
Debit $
Credit $
2-Jan
Cash (120,000*50)
6000000
To Common Stock (120,000*1)
120000
To Addition paid in capital-common (120,000*49)
5880000
(120000 shares of $1 issued at $ 50)
Feb.14
Cash (40,000*13)
520000
To Preferred Stock (40,000*10)
400000
To Addition paid in capital-Preferred (40,000*3)
120000
(40000 shares of $10 issued at $ 13)
May.08
Treasury stock
480000
To Cash
480000
(repurchase 12000 shares of common stock at $ 40)
May.31
Cash (6,000*45)
270000
To Treasury Stock (6,000*45)
240000
To Addition paid in capital-treasury (6,000*5)
30000
( to record the reissue of treasury stock)
Dec.1
Dividend Expanses
44500
To common Dividend Payable
(120,000-12000+6000)*$ 0.25
28500
To Preferred Dividend Payable
16000
Dec.15
No entry
Dec.31
Common Dividend Payable
28500
Preferred Dividend Payable
16000
To cash
44500
______________________________________________
balance sheet
Share holder section
Amount $
Share holder Equity
Common stock,$1 par value 120,000 issued
120,000
proffered stock $10 par value ,40,000 issued
400000
Paid in capital excess of par- common
5880000
Paid in capital excess of par- Preferred
120000
Paid in capital excess of par- Trusty
30000
Total paid in capital
6,550,000
Add: Retained earnings (470,000-44500)
425500
less:Tresuty stock (6000*40)
240000
Total Share holder Equity
6,735,500
Date
Description
Debit $
Credit $
2-Jan
Cash (120,000*50)
6000000
To Common Stock (120,000*1)
120000
To Addition paid in capital-common (120,000*49)
5880000
(120000 shares of $1 issued at $ 50)
Feb.14
Cash (40,000*13)
520000
To Preferred Stock (40,000*10)
400000
To Addition paid in capital-Preferred (40,000*3)
120000
(40000 shares of $10 issued at $ 13)
May.08
Treasury stock
480000
To Cash
480000
(repurchase 12000 shares of common stock at $ 40)
May.31
Cash (6,000*45)
270000
To Treasury Stock (6,000*45)
240000
To Addition paid in capital-treasury (6,000*5)
30000
( to record the reissue of treasury stock)
Dec.1
Dividend Expanses
44500
To common Dividend Payable
(120,000-12000+6000)*$ 0.25
28500
To Preferred Dividend Payable
16000
Dec.15
No entry
Dec.31
Common Dividend Payable
28500
Preferred Dividend Payable
16000
To cash
44500
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