Reference no: EM133205415
Following is the stockholders' equity section of Piazza Corp.'s January 1, 2021 balance sheet:
Common stock, $5 par.............................................$ 400,000
Additional paid-in capital-common.............................. 1,200,000
Additional paid-in capital-treasury stock....................... 15,000
Retained earnings................................................... 6,800,000
Treasury stock at cost, 2000 shares............................ (140,000)
$8,275,000
During 2021 Piazza engaged in the following transactions:
Jan. 15 Shares of common stock held in treasury were reissued at $58/share.
Feb. 12 Declared a 15% stock dividend to be distributed to stockholders on Feb. 25. The stock price on this date was $30/share.
April 1 Issued 1,000 shares of common stock in exchange for a machine and a computer. The machine had an appraised value of $20,000 and the computer had an appraised value of $5,000. The machine has an expected useful life of 10 years while the computer has an expected useful life of 5 years. (Hint: don't' forget to consider the share price of the stock, if applicable). The company's stock price on April 1 was $22/share.
May 1 Issued 10,000 shares of the Company's $5 par value common stock, at a price of $28/share.
June 15 Declared a $0.75/share dividend on common stock, payable on June 30th to stockholders of record on June 25th.
Required: Prepare the journal entries to record the stockholders' equity transactions on the dates indicated. Hint: keep track of the number of shares of common stock outstanding after each transaction. On January 15, there are 78,000 shares outstanding (80,000 - 2,000 in treasury).