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.) 1)Record the issuance of 100,000 shares of common stock for $35 per share.2)Record the issuance of 3,000 shares of 8% preferred stock for $11 per share.3)Record the purchase of 11,000 shares of its own common stock for $40 per share.4)Record the resale of 5,500 shares. Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactionsaffect stockholders' equity during 2021, its first year of operations:2Issues 100,000 shares of common stock for $35 per share.JanuaryFebruarySeptember 10 Purchases 11,000 shares of its own common stock for $40 per share.Issues 3,000 shares of 8% preferred stock for $11 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" inthe first account field.)View transaction listJournal entry worksheet124>Record the issuance of 100,000 shares of common stock for $35 per share.Note: Enter debits before credits.DateGeneral JournalDebitCreditJanuary 02, 2021Record entryClear entryView general journal

Treasury stock: Shares which are bought back by the company from the open market but not retired…

Answered: Finishing Touches has two classes of…

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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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.)

1)Record the issuance of 100,000 shares of common stock for $35 per share.

2)Record the issuance of 3,000 shares of 8% preferred stock for $11 per share.

3)Record the purchase of 11,000 shares of its own common stock for $40 per share.

4)Record the resale of 5,500 shares.

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:
2
Issues 100,000 shares of common stock for $35 per share.
January
February
September 10 Purchases 11,000 shares of its own common stock for $40 per share.
Issues 3,000 shares of 8% preferred stock for $11 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.)
View transaction list
Journal entry worksheet
1
2
4
>
Record the issuance of 100,000 shares of common stock for $35 per share.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
January 02, 2021
Record entry
Clear entry
View general journal

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