Sixnut incorporated has been authorized to issue 1000000

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Reference no: EM13379633

Sixnut, Incorporated has been authorized to issue 1,000,000 shares of $2 par common stock, and 50,000 shares of 6%, $100 par, cumulative, preferred stock. During the first six months of operation, the following transactions occurred related to the stock.

Jul 1^st Sold 150,000 shares of common stock for $10 per share, and 25,000 shares of preferred stock, sold at par.

Jul 1^stIssued 100,000 shares of common stock in exchange for the following assets:

Land $250,000

Building 750,000

Equipment 300,000

Inventory 200,000

The market value of the stock was $15 per share.

Sep 1^st Sold 100,000 shares of common stock for $20 per share.

Oct 31^st Repurchased 30,000 shares of common stock for $25 per share. Sixnut has elected to use the cost method to account for the treasury stock.

Nov 30^th Re-sold 20,000 shares of the treasury stock for $35 per share.

Dec 31^st Recorded net income for the first six months in the amount of $4,500,000.

Required: Prepare, in proper form, the journal entries required to account for these transactions.

Reference no: EM13379633

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