**Diane's Designs: Stock Transactions in 2021**Diane's Designs has two classes of stock authorized:- **8% Preferred Stock**: $10 par value- **Common Stock**: $1 par valueThe following transactions affected stockholders' equity during 2021, the first year of operations:- **January 1**: Issued 200,000 shares of common stock for $14 per share.- **February 6**: Issued 1,100 shares of preferred stock for $13 per share.- **October 10**: Purchased 12,000 shares of its own common stock for $17 per share.- **November 12**: Resold 5,000 shares of treasury stock at $24 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.

Solution:- Preparation of journal entries for each transaction as follows:-

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January February October 10 Purchase 12,000 shares of its own common stock for $17 per share. November 12 Resell 5,000 shares of treasury stock at $24 per share. 1 Issue 200,000 shares of common stock for $14 per share. 6 Issue 1,100 shares of preferred stock for $13 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.)

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January February October 10 Purchase 12,000 shares of its own common stock for $17 per share. November 12 Resell 5,000 shares of treasury stock at $24 per share. 1 Issue 200,000 shares of common stock for $14 per share. 6 Issue 1,100 shares of preferred stock for $13 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.)

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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