I am having some difficulty in understanding how to prepare the journal entries for these independent transactions. I would really appreciate the assistance when you get the chance. Thank you so much in advance for taking the time to review my post.
Prepare Journal Entries for the following independent transactions:
1. Issued 300 shares of $10 par value common stock for $3,875.
2. Issued 200 shares of $5 par value common stock for $850 and 300 shares of $50 preferred stock for $18,500.
3. Issued 600 shares of no-par common stock for $10,200. Prepare journal entries if (a) the stock had no stated value, and (b) the stock has a stated value of $2 per share.
4. Issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share.
5. Purchased land worth $31,000 by issuing 2,000 shares of its $5 par value common stock.
6. The company has 10,000 shares of $10 par value common stock outstanding. On July 15, the company reacquired 100 shares at $85 per share. On September 15, the company sold 60 of the reacquired shares at $90 per share. On November 15, the company sold 40 of the reacquired shares at $83 per share. The company uses the Cost Method. Prepare an entry for all dates.
7. The company has 20,000 shares of $5 par value common stock outstanding. On August 15, the company reacquired 200 shares at $75 per share. On September 1, the company sold 200 of the reacquired shares at $70 per share. The company had no previous treasury stock transactions. The company uses the Cost Method. Prepare an entry for both dates.
8. Issued 450 shares of $100 par value, 8% preferred stock for $61,500. The stock is cumulative and participating.
9. On April 20, declared a dividend of $700,000 payable on June 1. Of this amount, $125,000 is a return of capital. Prepare an entry for both dates.
10. On June 1, declared a 5% stock dividend on its 200,000 shares of $10 par value common stock, when the fair value of the stock was $65 per share. The distribution date is August 15. Prepare an entry for both dates.
11. Using the same information as in #10, but assume a 75% stock dividend was declared rather than a 5% stock dividend.
12. A 3-for-1 stock split is declared when there are 300,000 shares of $15 par value common stock outstanding. (a) How many shares are outstanding after the split? (b) What is the par value per share after the split? (c) What is the total par value after the split? (d) What journal entry is required to record the split?
13. The company has outstanding 10,000 shares of $100 par value, 8% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2001, and no dividends were declared in 2001 or 2002. In 2003, the company declares a cash dividend of $300,000. How will the dividend be shared by common and preferred if the preferred is (a) noncumulative and (b) cumulative?© BrainMass Inc. brainmass.com December 15, 2020, 4:16 pm ad1c9bdddf
The solution explains the journal entries relating to stockholders equity transactions.