Answered: Prepare the journal entries to record…

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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Question

Refer to the following transactions.

Sold 4,100 shares of $50 par value preferred stock at $52.50 per share.
Declared the annual cash dividend of $2.20 per share on common stock. There were 5,600 shares of $1 par value common stock issued and outstanding throughout the year.
Issued 8,000 shares of $50 par value preferred stock in exchange for a building when the market price of preferred stock was $54 per share.
Purchased 1,700 shares of preferred stock for the treasury at a price of $57 per share.
Sold 1,100 shares of the preferred stock held in treasury (see d) for $58 per share.
Declared and issued a 12% stock dividend on the $1 par value common stock (see b) when the market price per share was $44.

Prepare the journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the sale of 4,100 shares $50 par value preferred stock at $52.50 per share.
Record the declaration of annual cash dividend of $2.20 per share on common stock. There were 5,600 shares of $1 par value common stock issued and outstanding throughout the year.
Record the issue of 8,000 shares of $50 par value preferred stock in exchange for a building when the market price of preferred stock was $54 per shares
Record the purchase of 1,700 shares of preferred stock for the treasury at a price of $57 per share.
Record the sale of 1,100 shares of the preferred stock held in treasury for $58 per share.
Record the issuance of 12% stock dividend on the $1 par value common stock when the market price per share was $44.

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