Reference no: EM133105800

Question - (a) Issued 8,000 shares of common stock to the founders for land valued at $275,000. Par value of the common stock is $1 per share.

(b) Issued 4,000 shares of $100 par preferred stock for cash at $120 per share.

(c) Sold 2,500 shares of common stock to the company president for $45 per share.

(d) Purchased 750 shares of outstanding preferred stock issued in (b) for cash at par.

(e) Purchased 2,000 shares of the outstanding common stock issued in (a) for $39 per share.

(f) Reissued 400 shares of repurchased preferred stock at $112.

(g) Reissued 500 shares of reacquired common stock for $45 per share.

(h) Repurchased 200 shares of the common stock sold in (g) for $43 per share. These same 200 shares were later reissued for $40 per share.

(i) A dividend of $3 per share was declared on outstanding preferred stock.

(j) Staples decided to retire 100 shares of Preferred Treasury Stock.

(k) Staples decided to retire 200 shares of Common Treasury Stock.

Required - Prepare the necessary entries for the common stock transactions assuming that the cost method is used for recording treasury stock.