Question

Choctaw Co. completed the following transactions in 2016, the first year of operation: 1. Issued 33,000 shares of $10 par common stock for $10 per share. 2. Issued 4,300 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 2,300 shares of common stock as treasury stock for $12 per share. 4. Declared a $3,300 cash dividend on preferred stock. 5. Sold 1,000 shares of treasury stock for $14 per share. 6. Paid $3,300 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $104,000 and incurred cash expenses of $54,000. 8. Closed revenue, expense, and dividend accounts to the retained earnings account. 9. Appropriated $9,300 of retained earnings.

Answer 1

Jourrnal entries:
S.no.	Accounts title and explanations				Debit $	Credit $
1	cash account Dr.				330,000
	Common Stock Account					330,000
2	Cash Account Dr.				86000
	Preferred Stock Account					86000
3	Treasury Stock Account Dr.				27600
	Cash account (2300*12)					27600
4	Retained earnings Account Dr.				3300
	Dividend Prefered payable Account					3300
5	Cash Account Dr. (1000*14)				14000
	Treasury Stock Account (1000*12)					12000
	Additional Paid in Capital-Common					2000
6	Dividend -Preferred Payable Account Dr.				3300
	Cash Account					3300
7	Cash Account Ddr.				104000
	Revenue Account					104000
	Expense Account Dr.				54000
	Cash Account					54000
8	Revnue Account Dr.				104000
	Expense Account					54000
	Retained earnings					50000
9	Retained Earninigs Account Dr.				9300
	Dividend -Common Payable					9300