Reference no: EM133152974

Question - Bramble Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation assigned a $2.70 stated value to the common stock. At December 31, 2022, the ledger contained the following balances pertaining to stockholders' equity.

Preferred Stock $120,000

Paid-in Capital in Excess of Par-Preferred Stock 24,500

Common Stock 1,004,400

Paid-in Capital in Excess of Stated Value-Common Stock 1,599,600

Treasury Stock (960 common shares) 10,560

Paid-in Capital from Treasury Stock 1,440

Retained Earnings 84,500

The preferred stock was issued for land having a fair value of $144,500. All common stock issued was for cash. In November, 1,440 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 480 shares of treasury stock were sold for $14 per share. No dividends were declared in 2022.

Required -

(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) Sale of treasury stock for cash.

(b) Make the stockholders' equity section at December 31, 2022.