Question

Your answer is partially correct. Try again. Sandhill Co. had these transactions during the current period. June 12 Issued 87,000 shares of $1 par value common stock for cash of $326,250. July 11 Issued 2,750 shares of $103 par value preferred stock for cash at $110 per share. Nov. 28 Purchased 2,150 shares of treasury stock for $7,900. Prepare a tabular summary to record the Sandhill Co. transactions. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity Item that was reduced.) Assets Liabilities + Stockholders' Equity Pald-in-Capital Pret Stock Retained Earnings - Expense . Cash Common Stock PIC in Excess of Par Com. PIC in Excess of Par Pref. Treasury Stock + Revenue Dividend June 22 J J -87,000 July 11 87,000 103,000 2,150 Nov. 28 2150 Ti 11 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Assets

=

Liabilities

+

Stockholders' Equity

Paid in capital

+

Retained earnings

Cash

=

+

Common stock

+

PIC in excess of par com.

+

Pref. stock

+

PIC in excess pf par pref.

+

Treasury stock

+

Revenue

-

Expense

-

Dividend

June 22

326,250

87,000

239,250

July 11

302,500

283,250

19,250

Nov. 28

-7,900

7,900

On June 12, common stock will increase by = Number of shares issued x Par value per common share

= 87,000 x 1

= $87,000

PIC-common will increase by = Issue amount - Total par value of common stock

= 326,250 - 87,000

= $239,250

On July 11, preferred stock will increase by = Number of shares issued x Par value per preferred share

= 2,750 x 103

= $283,250

PIC - Preferred will increase by = Number of share issued x Issue price in excess of par value

= 2,750 x (110 - 103)

= $19,250

Cash will increase by = Number of shares issued x Issue price per share

= 2,750 x 110
= $302,500

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