Question

with this info given i need to know how to do the journal entry from 1-5?

Major League Apparel has two classes of stock authorized: 5%, $10 par preferred, and 51 par value common. The following transactions affect stockholders' equity duri January 2 Issue 100,000 shares of common stock for $60 per share February 14 Issue 50,000 shares of preferred stock for $11 per share. May 8 Repurchase 10,000 shares of its own common stock for $50 per share May 31 Reissue 5,000 shares of treasury stock for $55 per share. December 1 Declare a cash dividend on its common stock of $0.50 per share and a $25,000 (5% of par value) cash dividend on its preferred stock payable to all stockh The dividend is payable on December 30. (Hint Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1

Answer 1

Date	General Journal	Debit	Credit
January 02, 2018	Cash (100000*$60)	$6000000
	Common stock (100000*$1)		$100000
	Paid-in-capital in excess of par- Common stock (6000000-100000)		$5900000
	(To record common stock issued)
February 14, 2018	Cash (50000*$11)	$550000
	Preferred stock (50000*$10)		$500000
	Paid-in-capital in excess of par- Preferred stock (550000-500000)		$50000
	(To record preferred stock issued)
May 08, 2018	Treasury stock (10000*$50)	$500000
	Cash		$500000
	(To record treasury stock repurchased)
May 31, 2018	Cash (5000*$55)	$275000
	Treasury stock (5000*$50)		$250000
	Paid-in-capital from sale of treasury stock (275000-250000)		$25000
	(To record treasury stock reissue)
December 01, 2018	Cash dividends	$72500
	Cash dividends payable		$72500
	(To record cash dividend declared)

Outstanding shares for common stock cash dividend= Shares issued of common stock-Repurchase+Reissue

= 100000-10000+5000= 95000 shares

Cash dividend on common stock= 95000*$0.50= $47500

Total cash dividend= Preferred dividend+Common dividend

= $25000+47500= $72500