Part 4 : Accounting for Capital Stoek (30 points) January 1,2017,Clark value S2
ID: 2597953 • Letter: P
Question
Part 4 : Accounting for Capital Stoek (30 points) January 1,2017,Clark value S2 Corporation was authorized to issue 500,000 shares of common stock lue $95 per share. per share, and 20,000,shares of 5% cumulative prefered toa, par v Tnstructions: Prepare journal extries to recoed the following tzansactions. 16 Isued 6,000 shares of prefered stock for cash at $113.80 peshre Account Tities and Computstioss Debits April 16: Issued 40,000 shares of common stock for cash ot $9 00 rer hare Date Account Titles and Compotations Credits May 24: Declared cash dividends of $150.150 on common stock and $28,500 on preferred sock Account Titles and Cemputations Debits Credits May 31: Paid the dividends declared on May 24 to preferred and common stockholders Debits Credits Date Account Titles and Computations stock at S Credits Debits Account Titles and Computations Date Did you achieve your semester Goal? BONUS: Page 4 Test 4, V1 MSB110Explanation / Answer
Date
Particulars
Dr. $
Cr. $
Jan 16
Bank (6,000*$113)
678,000
5% Cumulative Preference Stock
(6,000*$95)
570,000
Additional paid in capital(6,000*$18)
108,000
(Being 6,000 preference shares issued at $113 per share)
April 16
Bank (40,000*$9)
360,000
Common Stock (40,000*$2)
80,000
Additional Paid in capital(40,000*$7)
280,000
(Being 40,000 Common shares issued at $9 per share)
May 24
Dividend expense
[$28,500 + $150,150]
178,650
Dividend Payable
178,650
(Being dividend declared on Preference and Equity)
May 31
Dividend Payable
178,650
Bank
178,650
(Being dividend declared paid)
Sept. 21
Treasury Stock (1,500*$8)
12,000
Bank
12,000
(Being 1500 common shares buy backed @$8 per share)
Note
I have done above two as it will save time.
Date
Particulars
Dr. $
Cr. $
Jan 16
Bank (6,000*$113)
678,000
5% Cumulative Preference Stock
(6,000*$95)
570,000
Additional paid in capital(6,000*$18)
108,000
(Being 6,000 preference shares issued at $113 per share)
April 16
Bank (40,000*$9)
360,000
Common Stock (40,000*$2)
80,000
Additional Paid in capital(40,000*$7)
280,000
(Being 40,000 Common shares issued at $9 per share)
May 24
Dividend expense
[$28,500 + $150,150]
178,650
Dividend Payable
178,650
(Being dividend declared on Preference and Equity)
May 31
Dividend Payable
178,650
Bank
178,650
(Being dividend declared paid)
Sept. 21
Treasury Stock (1,500*$8)
12,000
Bank
12,000
(Being 1500 common shares buy backed @$8 per share)