Palmaro Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,000,000 shares of no-par common stock . The corporation assigned a $2.50 stated value to the common stock . At December 31,
Palmaro Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $2.50 stated value to the common stock. At December 31, 2010, the ledger contained the following balances pertaining to stockholders’ equity.
Preferred Stock .................. $120,000
Paid-in Capital in Excess of Par Value-Preferred ..... 20,000
Common Stock ................. 1,000,000
Paid-in Capital in Excess of Stated Value-Common .... 1,800,000
Treasury Stock—Common (1,000 shares) ......... 13,000
Paid-in Capital from Treasury Stock ........... 500
Retained Earnings ................. 82,000
The preferred stock was issued for land having a fair market value of $140,000.All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $13. In December, 500 shares of treasury stock were sold for $14 per share. No dividends were declared in 2010.
(a) Prepare the journal entries for the:
(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.
(b) Prepare the stockholders’ equity section at December 31, 2010.
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...
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a 1 Land 140000 Preferred Stock 1200 X 100 120000 Paidin Capital in Excess of Par Value x Preferred …View the full answer
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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