Transactions in corporate accounting

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Reference no: EM1315095

Preparation of journal for various transactions in corporate accounting.

On 12/31/07, Rich Corporation had the following in the Stockholders' Equity section on the Balance Sheet:

8% Preferred stock, $100 par value, cumulative,
10,000 shares authorized, 7,000 shares issued and outstanding	$700,000
Common Stock, $10 par value, 500,000 shares authorized;
250,000 shares issued and outstanding	2,500,000
Additional paid-in capital-preferred	100,000
Additional paid-in capital-common	1,000,000
Retained Earnings	5,000,000
Total shareholders' Equity	$9,300,000

Prepare the journal entries for the following 2008 transactions. Place your answers below the rest of these questions.

Feb. 1	Issued 50,000 shares of $10 par value common stock for $750,000
April 15	Purchased 4,000 shares of treasury stock for $80,000
May 12	Sold 1,000 shares of treasury stock for $24,000
June 6	Sold the remaining 3,000 shares of treasury stock for $32,000
June 30	Declared dividends of $620,000, payable on 7/28/08 to owners of record on 7/14/08.
July 14	Date of record
July 28	Payment date
Sept. 15	Declared a 10% stock dividend (to common stock holders). The market price on 9/15 was $21 to be distributed on 10/15.
Oct. 15	Distributed the stock dividend.

Reference no: EM1315095

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