Question

Problem 13-6A (Part Level Submission)

Irwin Corporation has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation assigned a $2.70 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders’ equity.

The preferred stock was issued for land having a fair value of $142,000. All common stock issued was for cash. In November, 1,080 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 360 shares of treasury stock were sold for $14 per share. No dividends were declared in 2017.

Prepare the journal entries for the:

Preferred Stock

 

$120,000

Paid-in Capital in Excess of Par—Preferred Stock

 

22,000

Common Stock

 

1,004,400

Paid-in Capital in Excess of Stated Value—Common Stock

 

2,715,600

Treasury Stock (720 common shares)

 

7,920

Paid-in Capital from Treasury Stock

 

1,080

Retained Earnings

 

82,500

 



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