Concord Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 997,100 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $110,000 Paid-in Capital in Excess of Par—Preferred Stock 31,500 Common Stock 997,100 Paid-in Capital in Excess of Stated Value—Common Stock 1,687,400 Treasury Stock (960 common shares) 12,480 Paid-in Capital from Treasury Stock 1,440 Retained Earnings 83,500 Accumulated Other Comprehensive Income 57,000 The preferred stock was issued for land having a fair value of $141,500. All common stock issued was for cash. In November, 1,440 shares of common stock were purchased for the treasury at a per share cost of $13. In December, 480 shares of treasury stock were sold for $16 per share. No dividends were declared in 2020. Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Issuance of preferred stock for land. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. (4) Sale of treasury stock for cash.

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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Concord Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 997,100 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders’ equity.

Preferred Stock		$110,000
Paid-in Capital in Excess of Par—Preferred Stock		31,500
Common Stock		997,100
Paid-in Capital in Excess of Stated Value—Common Stock		1,687,400
Treasury Stock (960 common shares)		12,480
Paid-in Capital from Treasury Stock		1,440
Retained Earnings		83,500
Accumulated Other Comprehensive Income		57,000

The preferred stock was issued for land having a fair value of $141,500. All common stock issued was for cash. In November, 1,440 shares of common stock were purchased for the treasury at a per share cost of $13. In December, 480 shares of treasury stock were sold for $16 per share. No dividends were declared in 2020.

Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)		Issuance of preferred stock for land.
(2)		Issuance of common stock for cash.
(3)		Purchase of common treasury stock for cash.
(4)		Sale of treasury stock for cash.

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