Surfing Dewd Corporation is authorized to issue both preferred and common stock . Surfing Dewds preferred stock

Question:

Surfing Dewd Corporation is authorized to issue both preferred and common stock. Surfing Dewd’s preferred stock is $105 par, 6% preferred stock. During the first month of operations, the company engaged in the following transactions related to its stock. Show each of the following transactions in the accounting equation:

March 1 Issued 16,000 shares of $0.50 par value common stock for cash at $5 per share

March 11 Issued 1,500 shares of preferred stock at par

March 16 Purchased 3,000 shares of common stock to be held in the treasury for $7 per share

March 18 Issued 32,000 shares $0.50 par value common stock for cash at $10 per share

March 20 Sold 2,900 shares of the treasury stock purchased on the 16th for $12 per share

March 31 Declared a $10,000 dividend

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...