Answered: Prepare the journal entries to record…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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Refer to the following transactions.

Sold 4,100 shares of $50 par value preferred stock at $52.50 per share.
Declared the annual cash dividend of $2.20 per share on common stock. There were 5,600 shares of $1 par value common stock issued and outstanding throughout the year.
Issued 8,000 shares of $50 par value preferred stock in exchange for a building when the market price of preferred stock was $54 per share.
Purchased 1,700 shares of preferred stock for the treasury at a price of $57 per share.
Sold 1,100 shares of the preferred stock held in treasury (see d) for $58 per share.
Declared and issued a 12% stock dividend on the $1 par value common stock (see b) when the market price per share was $44.

Prepare the journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the sale of 4,100 shares $50 par value preferred stock at $52.50 per share.
Record the declaration of annual cash dividend of $2.20 per share on common stock. There were 5,600 shares of $1 par value common stock issued and outstanding throughout the year.
Record the issue of 8,000 shares of $50 par value preferred stock in exchange for a building when the market price of preferred stock was $54 per shares
Record the purchase of 1,700 shares of preferred stock for the treasury at a price of $57 per share.
Record the sale of 1,100 shares of the preferred stock held in treasury for $58 per share.
Record the issuance of 12% stock dividend on the $1 par value common stock when the market price per share was $44.

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