Question

Return to question Finishing Touches has two classes of stock authorized: 9% , $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 conmon stock for $19 per share. February 6 Iasues 1,400 shares of 9t preferred atock for $11 per ahare. September 10 Purchases 11,000 shares of ita ovn eommon stock for $24 per shafe. December 15 Resells 5,500 shares of treasury stock at $29 per share. 10 points 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.)

Answer 1

Date Account titles and Explanation Debit Credit January-02-2021 19,00,000 Cash Common stock Additional Paid-in capital - common stock 1,00,000 18,00,000 (Being common stock issued above par) 2 February-06-2021 15,400 Cash Preferred stock Additional Paid-in capital-preferred stock 14,000 1,400 (Being preferred stock issued above par) 2,64,000 September 10- 2021 Treasury stock Cash 2,64,000 (Being Treasury stock purchased) 4 1,59,500 December 15, 2021 Cash Treasury stock Additional paid-in capital 1,32,000 27,500 (being part of treasury stock reissued)