Use the following column headings:
Treasury Stocks and Net Income
Enter the transaction letter in the first column and show the effect (if any) of each of the following transactions on each financial statement category by entering a plus (+) or minus (-) sign and the amount in the appropiate column. Do not show items that effect net income in the retained earnings column. You may also write the entries to record these transactions. You should assume that the transactions occurred in the listed chronological sequence and that no stock had been previously issued. ( Hint remember to consider appropriate effects pf previous transactions.)
A) Issued 1,500 shares of $100 par value preferred stock at par.
B) Issued 2,400 shares of $100 par value preferred stock in exchange for land that had appraised value of $306,000
C) Issued 69,000 shares of $5 par value common stock for $11 per share.
D) Purchased 13,500 shares of common stock for the treasury at $13 per share.
E) Sold 6,000 shares of the treasury stock purchased in transaction d for $14 per share.
F) Declared a cash dividend of $1.75 per share on the preferred stock outstanding, to be paid early next year.
G) Declared and issued a 5% stock dividend on the common stock when the market price per share of common stock was $15.00.
The Solution records each transaction under the correct column and provides the journal entries for the related transactions.