Question

Problem 11-05A Swifty Corporation has been authorized to issue 21,100 shares of $100 par value, 8%, noncumulative preferred stock and 1,115,000 shares of no-par common stock. The corporation assigned a $4 stated value to the common stock. At December 31, 2022, the ledger contained the following balances pertaining to stockholders' equity. Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (4,290 common shares) Retained Earnings Accumulated Other Comprehensive Income $161,000 22,100 2,015,000 1,620,000 42,900 82,200 50,100 The preferred stock was issued for $183,100 cash. All common stock issued was for cash. In November 4,290 shares of common stock were purchased for the treasury at a per share cost of $10. No dividends were declared in 2022. Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) (1) (2) (3) Issuance of preferred stock for cash. Issuance of common stock for cash. Purchase of common treasury stock for cash.

Answer 1

Journal Entries No Accounts title & Suplaration Debil Cudil $183,100 $169000 Cash $161,000 Preferred stock prefereed Steck $22,100 Premium on Cash $36,35,000 Equity stock Premium on Stock $ 20,15,000 $ 16,20,000 $42,900 3 Treasury stock Cash $42.900

Shareholders Squeles Scdion of Balance Sheet w Bulbueba Swifty Corporation Partial Balance Sheet Stockholders Equly Paid in Capital Preferred stock $161,000 - Common stock - $20,15,000 - Paid in Capital Excess of par realus - $79,100 (Preferred stock) - Paid in Carital excess o panweiler - $ 16,20,000 (Common stock) - Paid in capital from Thecesury Stick - $42900 Retained Earnings - $82200 Accumulated other comprehensin Income - $ 50,100 Acarnitated less: Treasury stock $42,900) - $ 39,50,400