Question

This is a graded discussion: 10 points possible due Feb 4 2 2 Chapter 13 team discussion problem - Team 2 From ACCT&202 - 1200 Individually complete one part of the problem below. Each student on your team should complete a different part (1, 2, 3, or 4); teams with 3 members may complete any three parts. (Note that parts 1 and 2 each consist of one journal entry; parts 3 and 4 each consist of two journal entries.) In your post, (1) present the required journal entry or entries, (2) show all calculations, and (3) describe the impact of the journal entry for entries) on the stockholders' equity section of the balance sheet. IMPORTANT INSTRUCTIONS: 1. Navigate to your Group Homepage. Use your Group's Announcement tool to decide among your group-mates who will work on which part (1, 2, 3, or 4). 2. Once your roles are agreed, type or paste the solution to your part directly into your group's designated "Chapter 13 team discussion problem" Discussion forum. 3. For full credit, be sure to comment on at least two of your teammates' posts. Comments may be posted up to 24 hours after the initial team problem submission deadline. CHAPTER 13 TEAM PROBLEM Kodiak Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2020, its first year of operations: PART 1 January 2 Issue 110,000 shares of common stock for $70 per share. PART 2 February 14 Issue 60,000 shares of preferred stock for $12 per share. PART 3 May 8 Repurchase 11,000 shares of its own common stock for $60 per share. 31 Reissue 5,500 shares of treasury stock for $65 per share. May

Answer 1

Date	General Journal	Debit	Credit
Jan 02	Cash	$7,700,000		(110,000 x $70)
	Common Stock		$110,000	(110,000 x $1)
	Paid-in capital in excess of par value, common stock		$7,590,000	Balance
	(To record the issue of common stock)
Feb 14	Cash	$720,000		(60,000 x $12)
	Preferred Stock		$600,000	(60,000 x $10)
	Paid-in capital in excess of par value, preferred stock		$120,000	Balance
	(To record the issue of preferred stock)
May 8	Treasury Stock	$660,000		(11,000 x $60)
	Cash		$660,000
	(To record repurchase of own common stock)
May 31	Cash	$357,500		(5,500 x $65)
	Treasury Stock		$330,000	(5,500 x $60)
	Paid-In Capital – treasury stock		$27,500	Balance
	(To record reissue treasury stock)
Dec 1	Retained Earnings	$62,125
	Dividend Payable - Common Stock		$26,125	[(110,000 - 11,000 + 5,500) x $.25]
	Dividend Payable - Preferred Stock		$36,000
	(To record declare of dividend)
Dec 30	Dividend Payable - Common Stock	$26,125
	Dividend Payable - Preferred Stock	$36,000
	Cash		$62,125
	(To record payment of dividend)
	Kodiak Apparel
	Partial Balance Sheet
	December 31, 2017
	Stockholders’ equity
	Paid-in capital
	Capital Stock
	Preferred Stock	$600,000
	Common Stock	$110,000
	Total Capital Stock		$710,000
	Additional paid-in capital
	Paid-in capital in excess of par - Preferred Stock	$120,000
	Paid-in capital in excess of par - Common Stock	$7,590,000
	Paid-in capital in Treasury Stock	$27,500	$7,737,500
	Total paid-in capital		$8,447,500
	Retained earnings		($62,125)
	Total paid-in capital and retained earnings		$8,385,375
	Less: Treasury Stock		($330,000)
	Total stockholders' equity		$8,055,375