ACC 291

ACC 291 WEEK 4 INDIVIDUAL ASSIGNMENT – EXERCISES

P11-6A

(a) Prepare the journal entries for the:

(1) Issuance of preferred stock for land.
Land 296,000
Preferred Stock 240,000 (2,400 x $100)
Paid-in Capital in Excess of Par Value—Preferred 56,000

(2) Issuance of common stock for cash.
Cash 7,700,000 ($2,000,000 + $5,700,000)

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Common Stock2,000,000 (400,000 x $5)
Paid-in Capital in Excess of Stated Value—Common 5,700,000

(3) Purchase of common treasury stock for cash.
Treasury Stock 33,000 (1,500 x $22)
Cash 33,000

(4) Sale of treasury stock for cash.
Cash 14,000 (500 x $28)
Common Treasury Stock 11,000 (500 x $22)
Paid-in Capital from Treasury Stock 3,000 (500 x $6)

(b) Prepare the stockholders’ equity section at December 31, 2011.

ACC 291 WEEK 4 INDIVIDUAL ASSIGNMENT – EXERCISES