Part 2: Issue 51,000 shares of preferred stock for $12 per share. February 14, 2

Question

Part 2: Issue 51,000 shares of preferred stock for $12 per share. February 14, 2018

Part 3: Repurchase 11,000 shares of its own common stock for $51 per share. May 08, 2018

Part 4: Reissue 5,500 shares of treasury stock for $56 per share. May 31st, 2018

Part 5: Record the declaration of cash dividends. Demeber 1st, 2018

Part 6: Record the entry on the date of record. December 15th, 2018

Part 7: Pay the cash dividends declared on December 1. Record the payment of cash dividends. December 30th, 2018

| | + Mezto. mheducation.com / hm.tpx-Homework 9 Reader Grades FIN 2123-PERSONAL FINANCE-SEC TH 513 - Okla. Homework 9 Chegg Study | Guided Solutions and Study Help Chegg.com Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations January 2 Issue 110,000 shares of common stock for $61 per share February 14 Issue 51,000 shares of preferred stock for $12 per share May 8 Repurchase 11,000 shares of its own common stock for $51 per share May 31 Reissue 5,500 shares of treasury stock for $56 per share December 1 Declare a cash dividend on its common stock of $0.55 per share and a $30,600 (6% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. value: Required information 10.00 points Required 1. Record each of these transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 204367 Issue 110,000 shares of common stock for $61 per share Date General Journal Debit Credit January 02, 2018 *Enter debits before credits

Explanation / Answer

Major League Apparel All Amounts in $ JournalEntries Date Particulars Debit Credit 2 January 2018 Cash A/c 6710000 To Common Stock A/c 110000 To Excess Over Paid-in Capital A/c 6600000 14 February 2018 Cash A/c 612000 To 6% Preferred Stock A/c 510000 To Excess Over Paid-in Capital A/c 102000 8 May 2018 Treasury Stock A/c 11000 Excess Over Paid-in Capital A/c 550000 To Cash A/c 561000 31 May 2018 Cash A/c 308000 To Treasury Stock A/c 5500 To Excess Over Paid-in Capital A/c 280500 1 December 2018 Dividend on Common Stock A/c 54450 Dividends on Preferred Stock A/c 30600 To Dividends Payable A/c 85050 30 December 2018 Dividends Paya ble A/c 85050 To Caah A/c 85050

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