Coastal Corporation issued 25,000 shares of $5 par value common stock at $17 per share and 6,000 shares of $50 par value, eight percent preferred stock at $78 per share.Later, the company purchased 3,000 shares of its own common stock at $20 per share.a. Prepare the journal entries to record the share issuances and the purchase of the common shares.b. Assume that Coastal sold 2,000 shares of the treasury stock at $26 per share. Prepare the general journal entry to record the sale of this treasury stock.c. Assume that Coastal sold the remaining 1,000 shares of treasury stock at $19 per share. Prepare the journal entry to record the sale of this treasury stock.General JournalRef.a.b.C.Common StockIssued common stock.Description8 Percent Preferred StockIssued preferred stock.Acquired common stock.Paid-in-Capital from Treasury Stock.Sold shares of treasury stock.Paid-in-Capital from Treasury StockSold shares of treasury stock.◆+++◆++수$Debit0 $0000000000000Credit00000000000000

Preferred stock are those shares who enjoys the priority over annual dividends payment and payment…

Answered: Coastal Corporation issued 25,000…

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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Dwight Corporation in its first year of operations had the following stock transactions. Record each transaction in the journal provided. Mar 3 Issued 10,000 shares of common stock, $1 par value, for cash of $50,000. Apr 12 Issued 500 shares of preferred stock, $10 par value, for cash of $12,500. Jul 8 Issued 2,000 shares of preferred stock, $10 par value, in exchange for land valued at $60,000.
King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 7 percent, $25 par value, authorized 49,000 shares. Common shares: no par value, authorized 179,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses,…
Foley Co. bought 50 shares of its stock for $8 per share to be held as Treasury Stock. Record this transaction. Edit View Insert Format Tools Table
Ravonette Corporation issued 300 shares of $10 par value ordinary shares and 100 shares of $50 par value preference shares for a lump sum of $13,500. The ordinary shares have a market price of $20 per share, and the preference shares have a market price of $90 per share. Instructions Prepare the journal entry to record the issuance.
h. Purchased 40,000 shares of Pinkberry Co.'s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Description Debit Credit i. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Description Debit Credit j. Paid the cash dividends to the preferred stockholders. Description Debit Credit k. Received $27,500 dividend from Pinkberry Co. investment in (h). Description Debit Credit I. Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are a held-to-maturity investment. Description Debit Credit
Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was $10 per share. The journal entry to record the share issue would include which of the following? A). A debit to Cash for $10,000. B). A credit to Common Shares for $10,000. C). A credit to Common Shares for $15,000. D). A credit to Cash for $15,000
On April 2 a corporation purchased for cash 7,000 shares of its own $10 par common stock at $28 per share. It sold 4,000 of the treasury shares at $31 per share on June 10. The remaining 3,000 shares were sold on November 10 for $24 per share. a. Journalize the entries for the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank. Apr. 2 b. Journalize the entries for the sale of the stock. If an amount box does not require an entry, leave it blank. June 10 Nov. 10
Prepare the appropriate general journal entries for the following treasury stock transactions of Aberdeen Inc. Oct. 15 Purchased 7,000 shares of its $15 par common stock for $70,000 and placed the stock in the treasury. Dec. 1 Sold 2,000 shares of the treasury stock for $18,000 cash. Dec. 31 Sold the remaining treasury stock for $56,000 cash.
Wonder Ltd. has treasury stock transactions in 20X9 as follows: a. Feb. 27 Purchased 140,000 common shares as treasury stock at $6.50 per share. b. March 15 Purchased 64,000 common shares as treasury stock for $5.50 per share. c. April 30 Reissued 100,000 shares of treasury stock for $4.25 per share. d. May 16 Purchased 54,000 common shares as treasury stock for $6.05 per share. e. Nov. 26 Reissued 268,000 shares of treasury stock for $4 per share. At the end of 20X8, Wonder Limited had reported the following in shareholders’ equity: Common shares, no-par value; authorized, unlimited shares; issued, 5,800,000 shares, outstanding, 5,500,000 shares $ 21,117,000 Contributed capital on treasury stock transactions 133,600 Retained earnings 14,840,000 Treasury stock, 300,000 common shares (1,260,000) Required:1. Prepare…
WW Corp. resells 400 shares of its own common stock for $20 per share. WW had acquired these shares two months before for $14 per share. The resale of this stock would be recorded with a: Select one: a. Debit to Common Stock for $8,000 b. Credit to Additional Paid-In Capital for $800 c. Credit to Treasury Stock for $8,000 d. Credit to Additional Paid-In Capital for $2,400 e. Credit to Additional Paid-In Capital for $2,000
Sun Corporation received a charter that authorized the issuance of 80,000 shares of $6 par common stock and 20,000 shares of $100 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 Sold 12,000 shares of the $6 par common stock for $8 per share. 12 Sold 2,000 shares of the 8 percent preferred stock for $110 per share. Apr. 5 Sold 16,000 shares of the $6 par common stock for $10 per share. Dec.31 During the year, earned $318,500 in cash revenue and paid $238,300 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased 400 shares of the common stock as treasury stock at $12 per…
XYZ Company purchased 10,000 of its own shares at $14 per share. Journalize this transaction. DATE Debit Credit X/X XYZ Company sold 8,500 shares of treasury stock (from (c)) at $18 per share. Journalize this transaction. DATE Debit Credit X/X XYZ Company sold 1,500 shares of treasury stock (from (c)) at $13 per share. Journalize this transaction. DATE Debit Credit X/X

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