Stock Issuance, Treasury Stock, and Dividends
Response to the following problem:
On January 1, 2009, Snow Company was authorized to issue 100,000 shares of common stock, par value $10 per share and 10,000 shares of 8% preferred stock, par value $20 per share.
Record the following transactions for 2009:
a. Issued 70,000 shares of common stock at $25 per share.
b. Issued 8,000 shares of preferred stock at $30 per share.
c. Reacquired 5,000 shares of common stock at $20 per share.
d. Reissued 2,000 shares of treasury stock for $46,000.
e. Declared a cash dividend sufficient to meet the current-dividend preference on preferred stock and pay common shareholders $1 per share.