### Stockholders' Equity Transactions and Journal Entries for a CompanyA company has authorized two classes of stock:- **Preferred Stock**: 9%, $10 par value- **Common Stock**: $1 par valueThe following transactions affect stockholders' equity during 2021, the company's first year of operations:#### Transactions List1. **January 1**: Issue 300,000 shares of common stock for $17 per share.2. **February 6**: Issue 1,000 shares of preferred stock for $11 per share.3. **October 10**: Purchase 9,000 shares of its own common stock for $15 per share.4. **November 12**: Resell 5,000 shares of treasury stock at $25 per share.Record each of these transactions. *(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)*#### Journal Entry WorksheetBelow, we illustrate the journal entry worksheet you can use to record the first transaction. Follow these steps to complete the remaining entries:##### Example of Journal Entry for January 1 Transaction:- **Instruction**: Record the issuance of 300,000 shares of common stock for $17 per share.| Date | General Journal | Debit | Credit ||------------|------------------------------------------|------------------|------------------|| Jan 01, 2021 | Cash | $5,100,000 | || | Common Stock ($1 par value) | | $300,000 || | Additional Paid-In Capital—Common Stock | | $4,800,000 |**Note**: Enter debits before credits.#### NavigationYou can use the navigational arrows (left and right) to move between different transaction entries.**Button Options:**1. **Record entry**: Click to record the current journal entry.2. **Clear entry**: Click to clear the current journal entry for re-entry.3. **View general journal**: Click to view all recorded journal entries in the general journal.This educational module intends to help you familiarize yourself with accounting practices related to stockholders' equity and recording transactions in a journal entry format. Ensure accuracy when filling out the debit and credit fields to maintain proper accounting records. ### Transactions Affecting Stockholders' EquityA company has the following two classes of stock authorized: 9% preferred stock with a $10 par value, and common stock with a $1 par value. The following transactions impacted stockholders' equity during 2021, the company's first year of operations:1. **January 1**: Issued 300,000 shares of common stock at $17 per share.2. **February 6**: Issued 1,000 shares of preferred stock at $11 per share.3. **October 10**: Purchased 9,000 shares of its own common stock at $15 per share.4. **November 12**: Resold 5,000 shares of treasury stock at $25 per share.**Note:** Record each of these transactions. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.### Journal Entry WorksheetHere is the journal entry worksheet for recording these transactions. Be sure to enter debits before credits.#### Transaction Entry Example- **Date**: February 06, 2021- **Description**: Record the issuance of 1,000 shares of preferred stock for $11 per share.#### Worksheet Interface:- **Date**: Field to input the date of the transaction.- **General Journal**: Field to describe the transaction.- **Debit**: Field to enter the debit amounts.- **Credit**: Field to enter the credit amounts.**Buttons available:**- **Record entry**: Button to save the journal entry.- **Clear entry**: Button to clear the input fields.- **View general journal**: Button to view the general journal entries.**Graphical Interface:**The graphical interface includes navigational arrows to move between transaction entries. The entry for February 06, 2021, concerning the issuance of 1,000 shares of preferred stock for $11 per share, is highlighted in this example.---This content is tailored for educational purposes, providing a practical example of how to record stock transactions in a company's first year of operations.

Journal entries to record each transaction is as under:

A company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, Its first year of operations: January 1 Issue 300,000 shares of common stock for $17 per share. February 6 Issue 1,000 shares of preferred stock for $11 per share. October 10 Purchase 9,000 shares of its own common stock for S$15 per share. November 12 Resell 5,000 shares of treasury stock at $25 per share. Record each of these transactions. (If no entry Is requlred for a particular transaction/event, select "No Journal Entry Requlred" In the first account fleld.)

A company has the following two classes of stock authorized: 9%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, Its first year of operations: January 1 Issue 300,000 shares of common stock for $17 per share. February 6 Issue 1,000 shares of preferred stock for $11 per share. October 10 Purchase 9,000 shares of its own common stock for S$15 per share. November 12 Resell 5,000 shares of treasury stock at $25 per share. Record each of these transactions. (If no entry Is requlred for a particular transaction/event, select "No Journal Entry Requlred" In the first account fleld.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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