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Question 6
Pringle Corporation has been authorized to issue 21,300 shares of $100 par value, 8%, noncumulative preferred stock and 1,117,900 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 |
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$165,700 |
Paid-in Capital in Excess of Par Value—Preferred Stock |
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20,470 |
Common Stock |
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2,150,000 |
Paid-in Capital in Excess of Stated Value—Common Stock |
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1,678,000 |
Treasury Stock— (4,450 common shares) |
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53,400 |
Retained Earnings |
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83,200 |
The preferred stock was issued for $186,170 cash. All common stock issued was for cash. In November 4,450 shares of common stock were purchased for the treasury at a per share cost of $12. No dividends were declared in 2014.
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Prepare the journal entries for the following.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1) |
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Issuance of preferred stock for cash. |
(2) |
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Issuance of common stock for cash. |
(3) |
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Purchase of common treasury stock for cash. |
No.
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Account Titles and Explanation
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Debit
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Credit
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1. |
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$
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:
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$
[removed]
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admin2020-08-05 12:45:322020-07-10 15:25:13POST FOR HANDSHAKE