Question

Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, Its first year of operations: January 2 Issues 100,000 shares of common stock for $31 per share. February 6 Issues 2,600 shares of Be preferred stock for $12 per share. September 10 Purchases 10,000 shares of its own common stock for $36 per share. December 15 Resells 5,000 shares of treasury stock at $41 per share. Required: Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 Record the issuance of 100,000 shares of common stock for $31 per share. Note: Enter debits before credits Date General Journal Debit Credit January 02, 2021 Record entry Clear entry View general Journal

Answer 1

date	particulars	debit	credit
Jan-02	Cash A/c dr	3100000
	to common stock A/c (100000*1)		100000
	to additional paid in capital		3000000
Feb-06	Cash a/c dr	31200
	to preference stock A/c (2600*10)		26000
	to additional paid-in capital		5200
Sep-10	treasury stock A/c dr   (10000*36)	360000
	to cash A/c		360000
Dec-15	cash A/c dr	205000
	to additional paid in capital A/c                  (5000*(41-36) )		25000
	to treasury stock A/c		180000