1. Prepare journal entries for the following transactions.
a) Issued 12,000 shares of $25 par value preferred stock at $40 per share.
b) Issued 80,000 shares of common stock with a $10 stated value for cash of $18 per share.
c) Purchased 800 shares of treasury stock (common stock) at $20 per share.
d) Resold 200 shares of the treasury stock at $24 per share.

2. Gerber Corporation was organized on July 15, 2016. It was authorized to issue 150,000 shares of $5 par value common stock and 50,000 shares of 9% cumulative class A preferred stock. The class A preferred stock had a stated value of $10 per share.

The following stock transactions relate to Gerber Corporation.
1) Issued 50,000 shares of common stock for $22 per share.
2) Issued 4,000 shares of the class A preferred stock for $20 per share.
3) Issued 27,500 shares of common stock for $28 per share.

Prepare the general journal entries for the above transactions.

Answer rating: 100% (QA)

1 a Issued 12000 shares of 25 par value preferred stock at 40 per share Cash Dr 480000 Share Capital ... View the full answer