Question

5 15 points Finishing Touches has two classes of stock authorized: 9%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Tones 100,000 shares of common stock for $29 per share. February 6 Issues 2,400 shares of 9 preferred stock for $11 per share. September 10 Purchases 11,000 shares of its own common stock for $34 per share. December 15 Resells 5,500 shares of treasury stock at $39 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.) Skipped eBook View transactionist Hint Journal entry worksheet < 2 3 Print References Record the issuance of 100,000 shares of common stock for $29 per share. Note: Enter debits before credits General Journal Debit Credit Date January 02, 2021 MC < Prey 5 of 8 Next >

Answer 1

Date	Account Titles and Explanation	Debit	Credit
January 02, 2021	Cash ( 100,000 shares x $ 29 )	$ 2,900,000
	Common Stock             ( 100,000 shares x $ 1)		$ 100,000
	Paid in capital in excess of par -Common stock		$ 2,800,000
	(To record the issue of Common Stock)
February 6	Cash ( 2,400 shares x $ 11 )	$ 26,400
	Preferred Stock             ( 2,400 shares x $ 10 )		$ 24,000
	Paid in capital in excess of par   -Preferred stock		$ 2,400
	( To record issue of preferred stock )
September 10	Treasury Stock (11,000 shares x $ 34)	$ 374,000
	Cash		$ 374,000
	(To record the purchase of Treasury Stock)
December 15	Cash (5,500 shares x $ 39 )	$ 214,500
	Treasury Stock              (5,500 shares x $ 34 )		$ 187,000
	Paid in capital-Treasury stock		$ 27,500
	(To record sale of treasury stock)