On January 1, 20x1, Pepper Company had 100,000 shares of common shares issued and outstanding The book value of those shares was $500,000. Furthermore, they had 20,000 $2, cumulative, preferrec 3 shares issued and outstanding which had a book value of $100,000. 4 5 6 The following transactions took place in 20x1: 7 8 Feb 28-Issued 50,000 common shares for $220,000 9 10 Jun 1-Repurchased and cancelled 40,000 shares at $5.00 each. 11 12 Jun 30-A2:1 stock split was announced 13 14 Dec 15-Declared a dividend of $1.00/share to shareholders of record on Dec 31. 15 16 Required- 17 Prepare all journal entries to record the above transactions. Round to two decimal points on any 18 calculations. 19 20

On January 1, 20x1, Pepper Company had 100,000 shares of common shares issued and outstanding The book value of those shares was $500,000. Furthermore, they had 20,000 $2, cumulative, preferrec 3 shares issued and outstanding which had a book value of $100,000. 4 5 6 The following transactions took place in 20x1: 7 8 Feb 28-Issued 50,000 common shares for $220,000 9 10 Jun 1-Repurchased and cancelled 40,000 shares at $5.00 each. 11 12 Jun 30-A2:1 stock split was announced 13 14 Dec 15-Declared a dividend of $1.00/share to shareholders of record on Dec 31. 15 16 Required- 17 Prepare all journal entries to record the above transactions. Round to two decimal points on any 18 calculations. 19 20

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 10EB: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first...

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Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
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