Question

E11-2 Sagan Co. had these transactions during the current period. Issued 80,000 shares of $1 par value common stock for cash of $300,000. June 12 July 11 Issued 3,000 shares of $100 par value preferred stock for cash at $106 per share Nov. 28 Purchased 2,000 shares of treasury stock for $9,000.

Answer 1

Date	Account Titles and Explanation	Debit	Credit
June 12	Cash	$300,000
	Common stock (80000*$1)		$80,000
	Additional paid in capital - Common stock		$220,000
July 11	Cash (3000*106)	$318,000
	Preferred stock (3000*100)		$300,000
	Additional paid in capital - Preferred stock (3000*6)		$18,000
Nov. 28	Treasury stock	$9,000
	Cash		$9,000