Reference no: EM133144955
Question - Marigold Company reported the following amounts in the stockholders' equity section of its December 31, 2019, balance sheet.
Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000
Common stock, $5 par (108,000 shares authorized, 21,600 shares issued) 108,000
Additional paid-in capital 119,000
Retained earnings 419,000
Total $846,000
During 2020, Marigold took part in the following transactions concerning stockholders' equity.
1. Paid the annual 2019 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2019.
2. Purchased 1,700 shares of its own outstanding common stock for $41 per share. Marigold uses the cost method.
3. Reissued 600 treasury shares for land valued at $27,800.
4. Issued 480 shares of preferred stock at $104 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 2020 $10 per share dividend on preferred stock and the $2 per share dividend on common stock. These dividends are payable in 2021.
Required - Prepare journal entries to record the transactions described above.