Ayayai Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and
Question:
Ayayai Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 888,000 shares of no-par common stock. The corporation assigned a $2.40 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders’ equity.
| Preferred Stock | $100,000 | |
| Paid-in Capital in Excess of Par—Preferred Stock | 40,000 | |
| Common Stock | 888,000 | |
| Paid-in Capital in Excess of Stated Value—Common Stock | 1,332,000 | |
| Treasury Stock (800 common shares) | 8,800 | |
| Paid-in Capital from Treasury Stock | 1,200 | |
| Retained Earnings | 80,000 | |
| Accumulated Other Comprehensive Income | 50,000 |
The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1,200 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 400 shares of treasury stock were sold for $14 per share. No dividends were declared in 2020.
Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| (1) | Issuance of preferred stock for land. | |
| (2) | Issuance of common stock for cash. | |
| (3) | Purchase of common treasury stock for cash. | |
| (4) | Sale of treasury stock for cash. |
Expert Answer:
Land 140000 preferred stock 100000 paid in capital in excess of parpreferred 40000 cash ... View the full answer
