During 2020, Goodfellow has the following transactions involving its common and preferred stock: a. Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares and 100,000 shares are authorized. b. Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share. c. When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share. Required: Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31. Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31.
During 2020, Goodfellow has the following transactions involving its common and preferred stock: a. Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares and 100,000 shares are authorized. b. Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share. c. When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share. Required: Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31. Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 20P: Winona Company began 2019 with 10,000 shares of 10 par common stock and 2,000 shares of 9.4%, 100...
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During 2020, Goodfellow has the following transactions involving its common and preferred stock:
a. | Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares and 100,000 shares are authorized. |
b. | Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share. |
c. | When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share. |
Required:
Prepare a |
Prepare a journal entry for each transaction, if required. For grading purposes record the entries on December 31.
General Journal Instructions
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