Reference no: EM131633286
Question - Whispering Company reported the following amounts in the stockholders equity section of its December 31, 2016, balance sheet.
Preferred stock, 9%, $100 par (10,000 shares authorized, 1,900 shares issued) $190,000
Common stock, $5 par (108,500 shares authorized, 21,700 shares issued) 108,500
Additional paid-in capital 116,000
Retained earnings 424,000
Total $838,500
During 2017, Whispering took part in the following transactions concerning stockholders equity.
1. Paid the annual 2016 $9 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016.
2. Purchased 1,600 shares of its own outstanding common stock for $39 per share. Whispering uses the cost method.
3. Reissued 800 treasury shares for land valued at $31,600.
4. Issued 460 shares of preferred stock at $103 per share.
5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $42 per share.
6. Issued the stock dividend.
7. Declared the annual 2017 $9 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2018.
Required - Prepare journal entries to record the transactions described above.