Question

Tamarisk, Inc. has been authorized to issue 21,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,099,100 shares of no-par common stock. The corporation assigned a $2.90 stated value to the common stock. At December 31, 2019, the ledger contained the following balances pertaining to stockholders' equity. 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 (333 common shares) Paid-in Capital from Treasury Stock Retained Earnings Accumulated Other Comprehensive Income $130,000 11,000 1,099,100 1,629,700 3,996 501 81,000 53,000 The preferred stock was issued for land having a fair value of $141,000. All common stock issued was for cash. In November, 500 shares of common stock were purchased for the treasury at a per share cost of $12. In December, 167 shares of treasury stock were sold for $15 per share. No dividends were declared in 2019. - Your answer is partially 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 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.

Answer 1

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Tamarisk Inc.				-
Date	Account	Debit	Credit	Calculation
1	Land	141,000
	Preferred Stock		130,000
	Paid in Capital in Excess of Par-PS		11,000
2	Cash	2,728,800
	Common Stock		1,099,100
	Paid in Capital in Excess of Stated Value-CS		1,629,700
3	Treasury Stock	6,000		=500*12
	Cash		6,000
4	Cash	2,505		=167*15
	Treasury Stock		2,004	=167*12
	Paid in Capital from Treasury Stock		501

Tamarisk Inc. Balance Sheet - Partial As of December 31, 2019 1,099,100 130,000 1,229,100 Stockholders Equity Paid in capital Capital Stock Common Stock Preferred Stock Total Capital Stock Additional Paid in capital Paid in Capital in Excess of Stated Value-Common Stock Paid in Capital in Excess of Par-Preferred Stock Paid in Capital from Treasury Stock Total Additional Paid in Capital Total Paid in Capital Retained Earnings Total Paid in Capital & Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders Equity 1,629,700 11,000 501 1,641,201 2,870,301 81,000 2,951,301 53,000 (3,996) 3,000,305