Bramble Corp. has been authorized to issue 21,400 shares of $100 par value, 8%, noncumulative preferred shares
Question:
Bramble Corp. has been authorized to issue 21,400 shares of $100 par value, 8%, noncumulative preferred shares and 1,145,000 shares of no par value common stock.
The corporation assigned a declared value of $4 to the common shares. As of December 31, 2017, the general ledger contained the following balances corresponding to stockholders' equity.
Preferred stock | $ 164,000 | |
Paid-in capital in excess of par value: preferred stock | 22,400 | |
Common actions | 2,030,000 | |
Paid-in capital in excess of established value: common shares | 1,650,000 | |
Treasury stock (5,400 ordinary shares) | 70,200 | |
Retained earnings | 83,700 | |
Accumulated other comprehensive income | 50.400 |
The preferred shares were issued for $186,400 in cash. All common shares issued were in cash. In November, 5,400 common shares were purchased for treasury at a cost per share of $13. No dividends were declared in 2017.
(a)
Prepare journal entries for the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for account titles and enter 0 for amounts.)
(1) | Issuance of preferred shares in cash. | |
(2) | Issuance of common shares in exchange for cash. | |
(3) | Purchase of own ordinary shares in cash. |
No. | Account titles and explanation | Debit | Credit |
---|---|---|---|
1. | enter an account title to record the first transaction | enter a debit amount | enter a credit amount |
enter an account title to record the first transaction | enter a debit amount | enter a credit amount | |
enter an account title to record the first transaction | enter a debit amount | enter a credit amount | |
2. | enter an account title to record the second transaction | enter a debit amount | enter a credit amount |
enter an account title to record the second transaction | enter a debit amount | enter a credit amount | |
enter an account title to record the second transaction | enter a debit amount | enter a credit amount | |
3. | enter an account title to record the third transaction | enter a debit amount | enter a credit amount |
enter an account title to record the third transaction | enter a debit amount | enter a credit amount |
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso