Question 16 - Journalize the following transactions On January 1, 2019, CD Audio and Video Inc. issues 20,000 shares of $8 par val common stock for $10. On January 15, 2019, the company issues 5,000 shares of preferred stock 2% stock, $100 par value for $125. On October 1, 2019 declare a dividend of $30,000. December 15, 2019, Journalize the payment of dividends on December 15th. On December 20, 2019, CD Corporation re-acquires 5,000 shares of common stock for $15. On January 15, 2020, ,000 shares of the re-acquired stock were sold $17.
Question 16 - Journalize the following transactions On January 1, 2019, CD Audio and Video Inc. issues 20,000 shares of $8 par val common stock for $10. On January 15, 2019, the company issues 5,000 shares of preferred stock 2% stock, $100 par value for $125. On October 1, 2019 declare a dividend of $30,000. December 15, 2019, Journalize the payment of dividends on December 15th. On December 20, 2019, CD Corporation re-acquires 5,000 shares of common stock for $15. On January 15, 2020, ,000 shares of the re-acquired stock were sold $17.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 42BE: Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common...
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Transcribed Image Text:Question 16 - Journalize the following transactions
On January 1, 2019, CD Audio and Video Inc. issues 20,000 shares of $8 par value
common stock for $10.
On January 15, 2019, the company issues 5,000 shares of preferred stock 2%
stock, $100 par value for $125.
On October 1, 2019 declare a dividend of $30,000.
December 15, 2019, Journalize the payment of dividends on December 15th.
On December 20, 2019, CD Corporation re-acquires 5,000 shares of common
stock for $15.
On January 15, 2020, 2,000 shares of the re-acquired stock were sold $17.
Expert Solution
Step 1
Treasury stock refers to a method used by the organization to repurchase the issued stock. It is also known with the name of buyback of share. The management has the power to reissue these treasury stock in the future.
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