Question

1. XYZ Company has the following information from its charter. Common Stock, $2 par, 250,000 shares authorized Preferred Stock, 7%, $20 Par, 10.000 shares authorized Jan. 3 Issued 5,000 shares of common stock at $14 per share. Jan. 15 Issued 1,200 shares of preferred stock at $62 per share. Mar. 23 Declared a Cash Dividend of $0.50 per share to common stockholders and $1.40 per share to preferred stockholders. Date of record is Mar. 30. Apr. 5 Paid the cash dividend declared on Mar. 23. Apr. 16 issued 14,000 shares of common stock for $20 per share. May 20 Purchased 700 shares of treasury common stock at $17/share. May 29 Issued 2.900 share of preferred stock at $60/share. June 10 Sold 200 shares of treasury common stock at $20/share. June 13 Declared a Cash dividend of $0.50 per share to common stockholders and $1.40 to preferred stockholders. Date of record is June 20. Dividends will be paid on June 28. Date Account Titles Debit Credit 1-3-19 Cash 70.000 Common Stock 2.000 APIC 0 6.000 2.000 5-191 Preferred Stock 24.00 APIC 150,400 Cash

Answer 1

Date	Account title and explanation	Debit	Credit
Jan.3	Cash [5,000 x $14]	$70,000
	Common stock [5,000 x $2]		$10,000
	Paid-in capital in excess of par, common [5,000 x $12]		$60,000
	[Issuance of common stock]
Jan.15	Cash [1,200 x $62]	$74,400
	Preferred stock [1,200 x $20]		$24,000
	Paid-in capital in excess of par, Preferred [1,200 x $42]		$50,400
	[Issuance of Preferred stock]
Mar.23	Dividends	$4,180
	Dividends payable-Common [5,000 x $0.50]		$2,500
	Dividends payable-Preferred [1,200 x $1.40]		$1,680
	[Declaration of cash dividends]
Apr.5	Dividends payable-Common	$2,500
	Dividends payable-Preferred	$1,680
	Cash		$4,180
	[Payment of cash dividends]
Apr.16	Cash [14,000 x $20]	$280,000
	Common stock [14,000 x $2]		$28,000
	Paid-in capital in excess of par, common [14,000 x $18]		$252,000
	[Issuance of common stock]
May 20	Treasury stock	$11,900
	Cash [700 x $17]		$11,900
	[Purchase of own shares]
May 29	Cash [2,900 x $60]	$174,000
	Preferred stock [2,900 x $20]		$58,000
	Paid-in capital in excess of par, Preferred [2,900 x $40]		$116,000
	[Issuance of Preferred stock]
June 10	Cash [200 x $20]	$4,000
	Paid-in capital in excess from treasury stock		$600
	Treasury stock [200 x $17]		$3,400
	[Sale of treasury stock]
June 13	Dividends	$14,990
	Dividends payable-Common [(5,000+14,000-700+200) x $0.50]		$9,250
	Dividends payable-Preferred [(1,200+2,900) x $1.40]		$5,740
	[Declaration of cash dividends]