Finishing Touches has two classes of stock authorized: 6%, $100 par preferred, and $1 par value common.

Question:

Finishing Touches has two classes of stock authorized: 6%, $100 par preferred, and $1 common. The following transactions affect stockholders’ equity during 2015, its first year of operations:
January 2 Issues 100,000 shares of for $15 per share.
February 6 Issues 200 shares of 6% preferred stock for $120 per share.
September 10 Purchases 10,000 shares of its own for $18 per share.
December 15 Reissues 5,000 shares of treasury stock at $20 per share.

Required:
Record each of these transactions.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...