Question

Finishing Touches has two classes of stock authorized: 7%, $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 $24 per share. February 6 Issues 1,900 shares of 7% preferred stock for $13 per share. September 10 Purchases 12,000 shares of its own common stock for $29 per share. December 15 Resells 6,000 shares of treasury stock at $34 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.)

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Jan-02	Cash	$ 24,00,000
	Common stock		$   1,00,000
	Additional Paid - in - Capital - Common Stock		$ 23,00,000
Feb-06	Cash	$       24,700
	Preferred stock		$       19,000
	Additional Paid - in - Capital - Preferred stock		$         5,700
Sep-10	Treasury Stock	$   3,48,000
	Cash		$   3,48,000
Dec-15	Cash	$   2,04,000
	Treasury Stock		$   1,74,000
	Additional Paid - in - Capital - Treasury Stock		$       30,000