Problem

Recording Transactions Affecting Stockholders' Equity (P11–3)Granderson Company was gr...

Recording Transactions Affecting Stockholders' Equity (P11–3)

Granderson Company was granted a charter that authorized the following capital stock:

Common stock: 100,000 shares, par value per share is $40

Preferred stock: 8 percent; par $5: 20,000 shares

During the first year, 2011, the following selected transactions occurred in the order given:

a. Sold 30,000 shares of the common stock at $40 cash per share and 5,000 shares of the preferred stock at $26 cash per share.

b. Issued 2,000 shares of preferred stock when the stock was selling at $32.

c. Repurchased 3,000 shares of the common stock sold earlier; paid cash, $38 per share.

Required:

Give journal entries for each of these transactions.

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