Question

Problem 11-06A a-b (Part Level Submission) whispering Winds Corp. has been authorized to issue 20,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,120,000 shares of no-par common stock. The corporation assigned a $2.80 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity. $125,000 19,000 1,120,000 1,660,000 Preferred Stock Paid-in Capital in Excess of Par- Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (367 common shares) Paid-in Capital from Treasury Stock Retained Earnings Accumulated Other Comprehensive Income 4,404 549 80.500 53,000 The preferred stock was issued for land having a fair value of $144,000. All common stack issued was for cash. In November, 550 shares of common stack were purchased for the treasury at a per share cost of $12. In December, 183 shares of treasury stock were sold for $15 per share. No dividends were declared in 2020. Your answer is correct. 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) Issuance of preferred stock for land. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. (4) Sale of treasury stock for cash. Debit Credit No. Account Titles and Explanation 1. Land 144000 Preferred Stock 125000 Paid-in Capital in Excess of Parp 19000 2. Cash 2780000 Common Stock 1120000 Paid-in Capital in Excess of State 1660000 3. Treasury Stock 6600 Cash 6600 4. Cash 2745 Treasury Stock 2196 Paid-in Capital from Treasury stol

Answer 1

Balance Sheet (Partial)

December 31, 2020

Stockholder's equity
Paid in capital
Capital Stock
Common Stock		1120000
Preferred stock		125000
Total Capital Stock		1245000
Additional paid in capital
Paid in capital in excess of stated value-Common Stock	1660000
Paid in capital in excess of par-Preferred stock	19000
Paid in capital from sale of treasury stock	549
Total additional paid in capital		1679549
Total paid in capital		2924549
Retained earnings		80500
Total paid in capital and retained earnings		3005049
Accumulated other comprehensive income		53000
Less: Treasury Stock		-4404
Total Stockholder's equity		3053645