Problem - Prepare the solution in excel for part a of problem 11-6A in the textbook. Submit using the assignments tool. The solution for part b should be prepared for study purposes. Student are NOT required to submit the solution for part b.
"Arnold Corporation has been authorized to issue 40,000 shares of $100 par value 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders' equity.
Preferred Stock $240,000
Paid-in Capital in Excess of Par Value - Preferred 56,000
Common Stock 2,000,000
Paid-in Capital in Excess of Stated Value - Common 5,700,000
Treasury Stock - Common (1,000 Shares) 22,000
Paid-in Capital form Treasury Stock 3,000
Retained Earnings 560,000
The preferred stock was issued for land having a fair market value of $296,000. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.
Instructions:
(a) 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) Sales of treasury stock