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Diane's Designs has two classes of stock authorized: 8%, $10 parpreferred and $1 par value common. The following transactionsaffect stockholders' equity during 2012, its first year ofoperations:

January 1 Issue 200,000shares of common stock for $15 per share.
February 6 Issue 1,000shares of preferred stock for $11 per share.
October 10 Repurchase10,000 shares of its own common stock for $18 per share.
November 12

Reissue 5,000 shares of treasury stock at $20 per share.

Record each of these transactions: Date, General Journal, Creditor Debit

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Jean Keeling
Jean KeelingLv2
28 Sep 2019
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Related questions

Goodings, Inc. has two classes of stock authorized: 8%, $20 parvalue preferred and $1 par value common. The following transactionsaffect stockholders' equity during 2018, its first year ofoperations:

February 2 - Issue 1 million shares of common stock for $20 pershare.

February 4 Issue 50,000 shares of preferred stock for $21 pershare.

June 15 Purchase 100,000 shares of its own common stock for $18per share.

August 15 Reissue 75,000 shares of treasury stock for $23 pershare.

November 1 Declare a cash dividend on its preferred stock and a$1 per share cash dividend on its common stock to all stockholderson record on November 15.

November 30 Pay the dividends declared on November 1.

Record the journal entry for each of these transactions.

1. Environmental Designs issues 10,000 shares of its $1 parvalue common stock at $25 per share. (1) Record the issuance of thestock. (2) Record the issuance of the stock assuming it is no-parvalue stock.

2. Indicate whether each of the following transactions increases(+), decreases (-), or has no effect (NE) on total assets, totalliabilities, and total stockholders’ equity.

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Total Total Stockholders’

Transactions Assets Liabilities Equity

Issue common stock

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Sale of treasury stock

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3. Diane's Designs has two classes of stock authorized: 8%, $10par preferred and $1 par value common. The following transactionsaffect stockholders' equity during 2016, its first year ofoperations:

January 1 Issue 200,000 shares of common stock for $15 pershare.

February 6 Issue 1,000 shares of preferred stock for $11 pershare.

October 10 Repurchase 10,000 shares of its own common stock for$18 per share.

November 12 Reissue 5,000 shares of treasury stock at $20 pershare.

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Record each of these transactions.

4. Bostick Inc. has 60,000 shares of $2.00 par value commonstock outstanding and declares and distributes an 18% stockdividend. The market value of the stock was $45. Journalize thedeclaration and distribution of the stock dividend.

Finishing Touches has two classes of stock authorized: 7%, $10par preferred, and $1 par value common. The following transactionsaffect stockholders’ equity during 2018, its first year ofoperations: (Required: Record the journal entriesfor each of these transactions)

1. January 2 Issues 100,000 shares of common stock for $33 pershare.

2. February 6 Issues 2,800 shares of 7% preferred stock for $13per share.

3. September 10 Repurchases 12,000 shares of its own commonstock for $38 per share.

4. December 15 Reissues 6,000 shares of treasury stock at $43per share.

Required: Record the journal entries for eachof these transactions

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