Solution:
Journal Entries:
Date | Account Titles and Explanation | Debit | Credit |
Jan. 2 | Cash [110000*67] | $ 7,370,000 | |
Common stock [110000*1] | $ 110,000 | ||
Paid-In-Capital in Excess of Par Common Stock [110000*66] | $ 7,260,000 | ||
(To record Common Stock Issued) | |||
Feb. 14 | Cash [57000*12] | $ 684,000 | |
Preferred Stock [57000*10] | $ 570,000 | ||
Paid-In-Capital in Excess of Par Common Stock | $ 114,000 | ||
(To record Preferred Stock Issued) | |||
May. 8 | Treasury Stock [11000*57] | $ 627,000 | |
Cash | $ 627,000 | ||
(To record Treasury Stock purchased) | |||
May. 31 | Cash [ 5500*62 | $ 341,000 | |
Treasury Stock [5500*57] | $ 313,500 | ||
Add Paid-In Cap - Treasury Stock | $ 27,500 | ||
(To record treasury stock resold) | |||
Dec.1 | Cash Dividend | $ 76,000 | |
Dividend Payable-Common Stock [(110000-11000+5500)*0.4] | $ 41,800 | ||
Dividend Payable-Preferred Stock | $ 34,200 | ||
[To record cash dividend payable] | |||
Dec. 30 | Dividend Payable-Common Stock | $ 41,800 | |
Dividend Payable-Preferred Stock | $ 34,200 | ||
Cash | $ 76,000 | ||
[To record dividend paid] |
Statement of Stockholders` Equity Section:
MAJOR LEAGUE APPAREL | |
Balance Sheet | |
[Stockholders` Equity Section] | |
31-Dec-21 | |
Stockholder's equity : | |
6% Preferred Stock, $10 par, 57,000 shares issued and outstanding | $ 570,000 |
Common Stock, $1 par value, 110,000 shares issued and 104,500 shares outstanding | $ 110,000 |
Paid-in capital in excess of par-preferred stock | $ 114,000 |
Paid-in capital in excess of par-common stock | $ 7,260,000 |
Paid-in capital in excess of par-treasury stock | $ 27,500 |
Total paid in capital | $ 8,081,500 |
Retained Earnings [Net Income] | $ 487,000 |
Subtotal | $ 8,568,500 |
Less: Treasury Stock [ 5500*57] | $ (313,500) |
Total stockholder's Equity | $ 8,255,000 |
Required information Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-...
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