Question

Finishing Touches has two classes of stock authorized: 8%, $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 common stock for $34 per share. February 6 Issues 2,900 shares of 8% preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $39 per share. December 15 Resells 5,000 shares of treasury stock at $44 per share. 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.) X Answer is not complete. No Debit Credit 1 3,400,000 Date General Journal January 02, 2021 Cash Additional Paid-in Capital Common Stock 3,300,000 100,000 34,800 February 06, 2021 Cash Preferred Stock Additional Paid-in Capital 37,700 3,100 x 3 September 10, 202 Treasury Stock 39,000 Cash 39,000 X

Answer 1

no.	date	account	debit	credit
1	January 02, 2021	cash	3,400,000
		additional paid-in capital		3,300,000
		common stock		100,000
2	February 06, 2021	cash	34,800
		preferred stock		29,000
		additional paid-in capital		5,800
3	September 10, 2021	treasury stock (10,000 x 39)	390,000
		cash		390,000
4	December 15, 2021	cash (5,000 x 44)	220,000
		treasury stock (5,000 x 39)		195,000
		additional paid-in capital from treasury stock (5,000 x 5)		25,000