On January 1, 20x1, Pepper Company had 100,000 shares of common shares issued and outstanding The book value of those shares was $500,000. Furthermore, they had 20,000 $2, cumulative, preferrec 3 shares issued and outstanding which had a book value of $100,000. 4 5 6 The following transactions took place in 20x1: 7 8 Feb 28-Issued 50,000 common shares for $220,000 9 10 Jun 1-Repurchased and cancelled 40,000 shares at $5.00 each. 11 12 Jun 30-A2:1 stock split was announced 13 14 Dec 15-Declared a dividend of $1.00/share to shareholders of record on Dec 31. 15 16 Required- 17 Prepare all journal entries to record the above transactions. Round to two decimal points on any 18 calculations. 19 20
On January 1, 20x1, Pepper Company had 100,000 shares of common shares issued and outstanding The book value of those shares was $500,000. Furthermore, they had 20,000 $2, cumulative, preferrec 3 shares issued and outstanding which had a book value of $100,000. 4 5 6 The following transactions took place in 20x1: 7 8 Feb 28-Issued 50,000 common shares for $220,000 9 10 Jun 1-Repurchased and cancelled 40,000 shares at $5.00 each. 11 12 Jun 30-A2:1 stock split was announced 13 14 Dec 15-Declared a dividend of $1.00/share to shareholders of record on Dec 31. 15 16 Required- 17 Prepare all journal entries to record the above transactions. Round to two decimal points on any 18 calculations. 19 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 20x1, Pepper Company had 100,000 shares of common shares issued and outstanding.
The book value of those shares was $500,000. Furthermore, they had 20,000 $2, cumulative, preferred
3 shares issued and outstanding which had a book value of $100,000.
4
5
6 The following transactions took place in 20x1:
7
8 Feb 28-Issued 50,000 common shares for $220,000
9
10 Jun 1-Repurchased and cancelled 40,000 shares at $5.00 each.
11
12 Jun 30-A2:1 stock split was announced
13
14 Dec 15-Declared a dividend of $1.00/share to shareholders of record on Dec 31.
15
16 Required-
17
Prepare all journal entries to record the above transactions. Round to two decimal points on any
18 calculations.
19
20
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