Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $35 per share. February 6 Issues 3,000 shares of 8% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $40 per share. December 15 Resells 5,500 shares of treasury stock at $45 per share. Required: 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.)
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issues 100,000 shares of common stock for $35 per share. February 6 Issues 3,000 shares of 8% preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $40 per share. December 15 Resells 5,500 shares of treasury stock at $45 per share. Required: 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 10-6A Record issuance of stock and treasury stock transactions (LO10-2, 10-3,
10-4)
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The
following transactions affect stockholders' equity during 2021, its first year of operations:
January 2 Issues 100,000 shares of common stock for $35 per share.
February 6 Issues 3,000 shares of 8% preferred stock for $11 per share.
September 10 Purchases 11,000 shares of its own common stock for $40 per share.
December 15 Resells 5,500 shares of treasury stock at $45 per share.
Required:
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.)
No
1
2
3
4
Date
January 02, 2021 Cash
February 06, 2021 Cash
X Answer is complete but not entirely correct.
Common Stock
Additional Paid-in Capital
General Journal
Preferred Stock
Additional Paid-in Capital
September 10, 202 Treasury Stock
Cash
December 15, 202 Cash
Treasury Stock
Additional Paid-in Capital
Retained Earnings
Dividends
Cash
333
✓
3 3
✓
✓
✓
X
×
X
Debit
3,500,000
33,000
3
220,000 X
135,000 X
95,960 X
Credit
100,000
3,400,000
26,000 X
2,400 X
220,000
X
110,000 X
25,000 X
95,960 X
95,960
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