Reference no: EM132451040
Question - Pringle Corporation has been authorized to issue 22,500 shares of $100 par value, 9%, noncumulative preferred stock and 1,017,100 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders' equity.
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Preferred Stock
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$146,800
|
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Paid-in Capital in Excess of Par Value-Preferred Stock
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22,340
|
|
Common Stock
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2,040,000
|
|
Paid-in Capital in Excess of Stated Value-Common Stock
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1,511,000
|
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Treasury Stock- (5,000 common shares)
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45,000
|
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Retained Earnings
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81,000
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The preferred stock was issued for $169,140 cash. All common stock issued was for cash. In November 5,000 shares of common stock were purchased for the treasury at a per share cost of $9. No dividends were declared in 2014.
Required -
1. Prepare the journal entries for the following.
(i) Issuance of preferred stock for cash.
(ii) Issuance of common stock for cash.
(iii) Purchase of common treasury stock for cash.
2. Prepare the stockholders' equity section of the balance sheet at December 31, 2014.