Question

Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2018, its first year of operations:

January 2 Issues 100,000 shares of common stock for $34 per share.

February 6 Issues 2,900 shares of 8% preferred stock for $12 per share.

September 10 Repurchases 10,000 shares of its own common stock for $39 per share.

December 15 Reissues 5,000 shares of treasury stock at $44 per share.

Required:

Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Sr.No	Date	Particulars	Dr Amount	Cr Amount
1	Jan,2	Cash Account DR	3,400,000.00
		To Share Capital		100,000.00
		To Share premium		3,300,000.00
2	Feb,6	Cash Account DR	34,800.00
		To 8% Preferred Stock		29,000.00
		To Share Premium		5,800.00
3	Sep,10	Share Capital Dr	10,000.00
		Share Premium Dr	330,000.00
		Loss on Buy Back of Common Stock	50,000.00
		To Cash		390,000.00
4	Dec,15	Cash Account DR	220,000.00
		To Share Capital		5,000.00
		To Share premium		215,000.00