Preferred stock($100 par value, 5% non cumulative, 50,000 shares authorized, 10,000 shares issued & outstanding)....$1,000,000
Common stock ($10 par value, 200,000 shares authorized 100,000 shares issued & outstanding).... $ 1,000,000
Paid-in Capital in Excess of par, Common.......150,000
Retained Earnings 700,000
Jan 1 xyz declared 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on Jan 31 to shareholders as of Jan 25.
Feb 15 xyz reacquired 1,000 shares of common stock for $20 each
Mar 31 xyz reissue 250 shares of treasury stock for $25 each
July 1 xyz reissued 500 shares of treasury stock for $16 each
Oct 1 xyz declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on Oct. 15
Dec 15 xyz split common stock 2 shares for 1
Net income for 2015 was $ 275,000
Instructions:
Prepare journal entries for the transactions listed above
Prepare a Stockholder's section of a classified balance sheet as of December 31, 2015