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Melvina Corporation has been authorized to issue 23,600 shares of-(Answered)

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Question

Melvina Corporation has been authorized to issue?23,600?shares of $100?par value,?6%, noncumulative preferred stock and?1,001,000?shares of no-par common stock.


The corporation assigned a $4?stated value to the common stock. At December 31, 2012, the ledger contained the following balances pertaining to stockholders? equity.


Preferred Stock


$155,900

Paid-in Capital in Excess of Par Value?Preferred Stock


20,550

Common Stock


1,990,000

Paid-in Capital in Excess of Stated Value?Common Stock


1,709,000

Treasury Stock?Common (5,650?shares)


50,850

Retained Earnings


80,300


The preferred stock was issued for $176,450?cash. All common stock issued was for cash. In November?5,650?shares of common stock were purchased for the treasury at a per share cost of $9. No dividends were declared in 2012.

IE





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.

 

Paper#9256073 | Written in 27-Jul-2016

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