2.Carmen Company is a corporation that has issued both preferred and common stock. As of January...

 

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2.Carmen Company is a corporation that has issued both preferred and common stock. As of January 1, it had 50,000 shares of of 2.75% $100 par, preferred stock outstanding and 250,000 shares of $10 par common stock outstanding Journalize the following transactions. (a) On January 31, the board of directors issues a requirement to purchase 5,000 shares of its common stock at market price. The shares are purchased at a market price of $22 per share. (b) record is March 25 On March 15, Carmen declares a dividend on preferred stock of $2.75 per share. The date of and the date of payment is March 31. (c) On December 1, Carmen declares a cash dividend on common stock of $0.12 per share. The date of record is December 15 and the date of payment is December 21.| (d) On December 27, the board orders that 2,500 shares of the treasury stock purchased in (a) be sold. The sale price is $25 per share. 2.Carmen Company is a corporation that has issued both preferred and common stock. As of January 1, it had 50,000 shares of of 2.75% $100 par, preferred stock outstanding and 250,000 shares of $10 par common stock outstanding Journalize the following transactions. (a) On January 31, the board of directors issues a requirement to purchase 5,000 shares of its common stock at market price. The shares are purchased at a market price of $22 per share. (b) record is March 25 On March 15, Carmen declares a dividend on preferred stock of $2.75 per share. The date of and the date of payment is March 31. (c) On December 1, Carmen declares a cash dividend on common stock of $0.12 per share. The date of record is December 15 and the date of payment is December 21.| (d) On December 27, the board orders that 2,500 shares of the treasury stock purchased in (a) be sold. The sale price is $25 per share.

Answer rating: 100% (QA)

Date Account titles and explanation Debit Credit a Jan 31 Treasury s... View the full answer