Diane's Designs has two classes of stock authorized: 6%, $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 200,000 shares of common stock for $14 per share. February 6 Issue 1,000 shares of preferred stock for $15 per share. October 10 Purchase 10,000 shares of its own common stock for $16 per share. November 12 Resell 6,000 shares of treasury stock at $21 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.) Record the issuance of 200,000 shares of common stock for $14 per share. Date General Journal Debit Credit Jan 01, 2021 Record the issuance of 1,000 shares of preferred stock for $15 per share. Date General Journal Debit Credit Feb 06, 2021 Record the purchase of 10,000 shares of its own common stock for $16 per share. Date General Journal Debit Credit Oct 10, 2021 Record the reselling of 6,000 shares of treasury stock at $21 per share. Date General Journal Debit Credit Nov 12, 2021

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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Diane's Designs has two classes of stock authorized: 6%, $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 200,000 shares of common stock for $14 per share.
February	6	Issue 1,000 shares of preferred stock for $15 per share.
October	10	Purchase 10,000 shares of its own common stock for $16 per share.
November	12	Resell 6,000 shares of treasury stock at $21 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.)

Record the issuance of 200,000 shares of common stock for $14 per share.

Date	General Journal	Debit	Credit
Jan 01, 2021

Record the issuance of 1,000 shares of preferred stock for $15 per share.

Date	General Journal	Debit	Credit
Feb 06, 2021

Record the purchase of 10,000 shares of its own common stock for $16 per share.

Date	General Journal	Debit	Credit
Oct 10, 2021

Record the reselling of 6,000 shares of treasury stock at $21 per share.

Date	General Journal	Debit	Credit
Nov 12, 2021

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