Bramble Corp. has been authorized to issue 20,500 shares of $100 par value, 10%, preferred stock and 1,025,000 shares of no-par common stock. The corp. assigned a $2.50 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity. Preferred Stock $115,000 Paid-in capital in excess of par-preferred stock. 28,000 Common Stock 1,025,000 Paid-in capital in excess of stated-value-common stock 2,255,000 Treasury stock (940 common shares). 11,280 Paid-in capital from treasury stock. 1,410 Retained earnings. 81,500 Accumulated other comprehensive income. 56,000 The preferred stock was issued for land having a fair value of $143,000. All common stock issued was for cash. In November, 1,410 shares of common stock were purchased for the treasury at a par share cost of $12. In December, 470 shares of treasury stock were sold for $15 per share. No dividends were declared in 2020. Prepare the journal entries for the 1) Issuance of preferred stock for land. 2) Issuance of common stock for cash. 3) Purchase of common treasury stock for cash. 4) Sale of treasury stock for cash. *please solve and explain. Thanks!
Bramble Corp. has been authorized to issue 20,500 shares of $100 par value, 10%,
Preferred Stock $115,000
Paid-in capital in excess of par-preferred stock. 28,000
Common Stock 1,025,000
Paid-in capital in excess of stated-value-common stock 2,255,000
Paid-in capital from treasury stock. 1,410
Accumulated other comprehensive income. 56,000
The preferred stock was issued for land having a fair value of $143,000. All common stock issued was for cash. In November, 1,410 shares of common stock were purchased for the treasury at a par share cost of $12. In December, 470 shares of treasury stock were sold for $15 per share. No dividends were declared in 2020.
Prepare the
1) Issuance of preferred stock for land.
2) Issuance of common stock for cash.
3) Purchase of common treasury stock for cash.
4) Sale of treasury stock for cash.
*please solve and explain. Thanks!
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