Switch To Light Mode

Accounting $14$

Chapter $12-$ Corporations: Organization, Stock Transactions and Dividends

Stock Journal Entries Practice Problem $2$

The following selected accounts appear in the ledger of Manderlee Corp. on January $1,$

Preferred $5\%$ Stock, $$100$ par $(50,000$ shares authorized, $500$ shares issued$)$ $ $50,000$

Paid$-$in Capital in Excess of Par $-$ Preferred Stock $,$ $ $20,000$

Common Stock, S$10$ par $(500,000$ shares aulhorized, $10,000$ shares issued$)$ $ $100,000$

Paid$-$in Capital in Excess of Par $-$ Common Stock $,$ S $200,000$

Retained Earnings $$42,000$

Journalize:

Issue of $4,000$ share of common stock at $$20,$ receiving cash

Purchased $2,000$ shares of treasury common for $$36,000$

Sold $400$ shares of treasury common for $$6,800$

Sold $600$ shares of treasury common for $$12,000$

Declared a cash dividend of $$5$ per share on preferred stock and $$1$ per share on common stock