Prepare the journal entries for issuance of preferred stock

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Question - Pringle Corporation has been authorized to issue 23,100 shares of $100 par value, 6%, noncumulative preferred stock and 1,020,800 shares of no-par common stock.

The corporation assigned a $4 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock $140,900

Paid-in Capital in Excess of Par Value-Preferred Stock 21,420

Common Stock 2,200,000

Paid-in Capital in Excess of Stated Value-Common Stock 1,724,000

Treasury Stock- (4,000 common shares) 44,000

Retained Earnings 83,900

The preferred stock was issued for $162,320 cash. All common stock issued was for cash. In November 4,000 shares of common stock were purchased for the treasury at a per share cost of $11. No dividends were declared in 2014.

Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1) Issuance of preferred stock for cash.

(2) Issuance of common stock for cash.

(3) Purchase of common treasury stock for cash.

Prepare the stockholders' equity section of the balance sheet at December 31, 2014.

Reference no: EM132049858

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