Problem - Pringle Corporation has been authorized to issue 21,200 shares of $100 par value, 6%, noncumulative preferred stock and 1,171,000 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders' equity.
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Preferred Stock
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$143,800
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Paid-in Capital in Excess of Par Value-Preferred Stock
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22,690
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Common Stock
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2,130,000
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Paid-in Capital in Excess of Stated Value-Common Stock
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1,485,000
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Treasury Stock- (5,400 common shares)
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70,200
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Retained Earnings
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81,900
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The preferred stock was issued for $166,490 cash. All common stock issued was for cash. In November 5,400 shares of common stock were purchased for the treasury at a per share cost of $13. No dividends were declared in 2014.
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.
Prepare the stockholders' equity section of the balance sheet at December 31, 2014.