Problem
Pringle Corporation has been authorized to issue 19,400 shares of $100 par value, 7%, noncumulative preferred stock and 1,003,500 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 $156,700
Paid-in Capital in Excess of Par Value-Preferred Stock 20,260
Common Stock 2,270,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,422,000
Treasury Stock- (4,720 common shares) 56,640
Retained Earnings 81,400
The preferred stock was issued for $176,960 cash. All common stock issued was for cash. In November 4,720 shares of common stock were purchased for the treasury at a per share cost of $12. No dividends were declared in 2014.
(a) Prepare the journal entries for the following.
(1) Issuance of preferred stock for cash.
(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.