Assignment:
1. Issued 4,000 shares of $100 par preferred stock at $110 for cash.
2. Issued 5,000 shares of common stock with a par value of $10 for $85,000.
3. Purchased 500 shares of common treasury stock for $10,000.
Instructions: Prepare the appropriate journal entries.
Problem 1:
On January 1, 2003, Dial Company issued 15,000 shares of $2 par value common stock for $100,000. On March 1, 2003, the company purchased 2,000 shares of its common stock for $10 per share for the treasury. On June 1, 2003, 700 of the treasury shares are sold for $13 per share. On September 1, 2003, 1,000 treasury shares are sold at $7 per share.
Instructions: Journalize the stock transactions of Dial Company in 2003.
Problem 2:
In its first year of operations, Abbott Corporation had the following transactions pertaining to its $40 par value preferred stock.
Feb. 1 Issued 4,000 shares for cash at $41 per share.
Nov. 1 Issued 2,000 shares for cash at $44 per share.
Instructions
(a) Journalize the transactions.
(b) Indicate the amount to be reported for (1) preferred stock, and (2) paid-in capital in excess of par value-preferred stock at the end of the year.
Problem 3: (Decision Making)
Majors Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2003, there were 500,000 shares issued and outstanding. On June 30, 2003, the board of directors declared a $.50 per share cash dividend to be paid on August 1, 2003.
Instructions:
Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.