Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. provide the following journal entries: 1.  on fe

Provide the following journal entries: 1.  On Feb. 1 ABC Company issues 100,000 shares for common stock, $1...

90.2K

Verified Solution

Question

Accounting

Provide the following journal entries:

1.  On Feb. 1 ABC Company issues 100,000 shares forcommon stock, $1 par, and 10,000 shares of preferred stock, 6%,$100 par.  The common stock is sold at$72/share.  The preferred stock is sold at $108 pershare.

2.  On April 1 the ABC Company Board declares theregular preferred dividend.  The record date is April 15,the payment date is April 30.

3.  On May 1 we buy back 10,000 shares of common at$81/share.

4.  On June 15 we sell 1,000 shares of treasury stockat $85/share.

5.  On October 15 we sell 2,000 shares of treasurystock at $62/share.

6.  On Dec. 15 our stock is trading at $110/share. Wedeclare a 2 for 1 stock split.

Answer & Explanation Solved by verified expert
3.6 Ratings (429 Votes)
Date Accounts Name Debit Credit Cash 100000 72 7200000 Common Stock 100000 1 100000 Additional paid in Capital 100000 72 1 7100000 to record the issue of Common Stock Cash 100000 108 1080000 preference Common Stock    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

I want to reach out and grab my cup of coffee. Name and describe the three...

Medical Sciences
Q

Using Porter's Five Forces , conduct a strategic analysis of an industry that you are familiar...

General Management
Q

Figure shows the graph of stopping potential versus the frequency for a photosensitive metal The...

Physics
Q

Solve the problem below Be sure to show all calculations Explanations given to justify your...

Basic Math
Q

The tuition costs, C, for a local community college aremodeled by C(h) = 250 +...

Basic Math
Q

Consider the functions f(x) = -7x-5 and g(x) = -1/7(x+5).(a) Find f(g(x)).(b) Find g(f(x)).(c) Determine...

Algebra
Q

What does this make my NET INCOME ...

Accounting
Q

*Virginia Company, a merchandising firm, operated 4 sales offices last year at a total cost...

Accounting
Q

What is the present value of 38230.24 payable in 25 years if the interest rate...

Accounting
Q

Mojo Industries tracks the number of units purchased and sold throughout each accounting period but...

Accounting
Q

Amazon.com uses automated dispatch equipment. Assume that early in year one, Amazon purchased equipment at...

Accounting
Q

Changes and Corrections of Depreciation At the beginning of 2017, Holden Company's controller asked you...

Accounting