Problem
Part Level Submission
Irwin Corporation has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation assigned a $2.70 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders' equity.
Preferred Stock $120,000
Paid-in Capital in Excess of Par-Preferred Stock 22,000
Common Stock 1,004,400
Paid-in Capital in Excess of Stated Value-Common Stock 2,715,600
Treasury Stock (720 common shares) 7,920
Paid-in Capital from Treasury Stock 1,080
Retained Earnings 82,500
The preferred stock was issued for land having a fair value of $142,000. All common stock issued was for cash. In November, 1,080 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 360 shares of treasury stock were sold for $14 per share. No dividends were declared in 2017.
Prepare the journal entries for the:
(1) Issuance of preferred stock for land.
(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.
(4) Sale of treasury stock for cash.