The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1,650 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 550 shares of treasury stock were sold for $14 per share. No dividends were declared in 2022. (a) Prepare the journal entries for the: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not Indent manually) (1) Issuance of preferred stock for land. (2) Issuance of common stock for cash (3) Purchase of common treasury stock for cash Sale of treasury stock for cash. 16
The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In November, 1,650 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 550 shares of treasury stock were sold for $14 per share. No dividends were declared in 2022. (a) Prepare the journal entries for the: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not Indent manually) (1) Issuance of preferred stock for land. (2) Issuance of common stock for cash (3) Purchase of common treasury stock for cash Sale of treasury stock for cash. 16
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give image format and explanation
Transcribed Image Text:The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In
November, 1,650 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 550 shares of
treasury stock were sold for $14 per share. No dividends were declared in 2022.
(a)
1.
Prepare the journal entries for the: (List all debit entries before credit entries. Credit account titles are automatically Indented when
amount is entered. Do not indent manually)
3.
(1)
(2)
(3)
(4)
Issuance of preferred stock for land.
Issuance of common stock for cash
Purchase of common treasury stock for cash.
Sale of treasury stock for cash.
16
No. Account Titles and Explanation
Show Transcribed Text
Land
Preferred Stock
3
Debit
Credit
Transcribed Image Text:Marigold Corporation has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,020,000 shares of
no-par common stock. The corporation assigned a $2.50 stated value to the common stock. At December 31, 2022, the ledger
contained the following balances pertaining to stockholders' equity.
Preferred Stock
Paid-in Capital in Excess of Par-Preferred Stock
Common Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Treasury Stock (1.100 common shares)
Paid-in Capital from Treasury Stock
Retained Earnings
$130,000
10,000
1,020,000
2,244,000
12,100
1,650
84,500
The preferred stock was issued for land having a fair value of $140,000. All common stock issued was for cash. In
November, 1,650 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 550 shares of
treasury stock were sold for $14 per share. No dividends were declared in 2022.
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