Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders’ equity.

Need a Professional Writer to Work on this Paper and Give you Original Paper? CLICK HERE TO GET THIS PAPER WRITTEN

Preferred Stock                                                                         $240,000

Paid-in Capital in Excess of Par Value-Preferred                         56,000

Common Stock                                                                         2,000,000

Paid-in Capital in Excess of Stated Value-Common                5,700,000

Treasury Stock-Common (1,000 shares)                                      22,000

Paid-in Capital from Treasury Stock                                               3,000

Retained Earnings                                                                      560,000

The preferred stock was issued for land having a fair market value of $296,000. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.

Instructions

(a) 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.

Need a Professional Writer to Work on this Paper and Give you Original Paper? CLICK HERE TO GET THIS PAPER WRITTEN

Latest completed orders:

Completed Orders
# Title Academic Level Subject Area # of Pages Paper Urgency