Question

Save & Exit Submit Help Saved O Homework eck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to 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 $25 per share. February 6 Issues 2,000 shares of 8% preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $30 per share. December 15 Resells 5,000 shares of treasury stock at $35 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.) Answer is not complete. Crodit Debit General Journal Date No 2,500,000 Cash January 02, 2021 1 2,400,000 100,000 Additional Paid-in Capital Common Stock

Answer 1

Required journal entries are:

Date	General Journal	Debit	Credit
January 2	Cash	2500000
	Common stock		100000
	Additional paid in capital		2400000
	(for 100000 shares issued @ $1 par per share)
February 6	Cash	24000
	Preferred stock		20000
	Additional paid in capital - Preferred stock		4000
	(for 2000 preferred stock issued @ $10 par per share)
September 10	Treasury stock (10000 * $1 par)	10000
	Additional paid in capital (10000 * $24)	240000
	Retained earnings	50000
	Cash		300000
	(for buy back own shares of $1 par at $30 per share)
December 15	Cash	175000
	Treasury stock (5000 * $1 par)		5000
	Additional paid in capital (5000 * $34)		170000
	(for reissue of treasury stock of $1 par @35 per share