The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, Year 3, is as follows: Shareholders’ Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 34,500 shares $3,450,000 Common stock, $5 par value; authorized, 2,000,000 shares; issued, 405,000 shares 2,025,000 Paid-in capital in excess of par—preferred 97,000 Paid-in capital in excess of par—common 897,000 Retained earnings 3,200,000 $9,669,000 The following events occurred during Year 4: Jan. 5 10,000 shares of authorized and unissued common stock were sold for $7 per share. 16 10,000 shares of authorized and unissued preferred stock were sold for $108 per share. Apr. 1 76,000 shares of common stock were repurchased for the treasury at a price of $16 per share. Superior uses the cost method to account for treasury stock. Sept. 1 3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $390,500. The preferred stock currently trades on the New York Stock Exchange at a price of $109 per share. Dec. 1 26,000 shares of treasury stock are reissued at a price of $26 per share. Required: 1. Prepare journal entries for each of the above transactions.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, Year 3, is as follows:

Shareholders’ Equity
Preferred stock, $100 par value; authorized, 300,000 shares; issued, 34,500 shares	$3,450,000
Common stock, $5 par value; authorized, 2,000,000 shares; issued, 405,000 shares	2,025,000
Paid-in capital in excess of par—preferred	97,000
Paid-in capital in excess of par—common	897,000
Retained earnings	3,200,000
	$9,669,000

The following events occurred during Year 4:

Jan. 5	10,000 shares of authorized and unissued common stock were sold for $7 per share.
16	10,000 shares of authorized and unissued preferred stock were sold for $108 per share.
Apr. 1	76,000 shares of common stock were repurchased for the treasury at a price of $16 per share. Superior uses the cost method to account for treasury stock.
Sept. 1	3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $390,500. The preferred stock currently trades on the New York Stock Exchange at a price of $109 per share.
Dec. 1	26,000 shares of treasury stock are reissued at a price of $26 per share.