The following selected items and amounts were taken from the balance sheet of Quale Company as of December 31, 2003:
|
Cash |
$ 93,000 |
|
Property, plant, and equipment |
850,000 |
|
Accumulated depreciation. |
150,000 |
|
Liabilities |
50,000 |
|
Preferred stock (7%, $100 par, noncumulative, 10,000 shares authorized, |
|
|
5,000 shares issued and outstanding) |
500,000 |
|
Common stock ($10 par, 100,000 shares authorized, |
|
|
80,000 shares issued and outstanding) |
800,000 |
|
Paid in capital in excess of par, preferred stock |
1,000 |
|
Paid in capital in excess of par, common stock |
125,000 |
|
Paid in capital, treasury stock. |
1,000 |
|
Retained earnings |
310,000 |
Required For each of parts (1) to (5), (a) prepare the necessary journal entry (or entries) to record each transaction, and (b) calculate the amount that would appear on the December 31, 2003, balance sheet as a consequence of this transaction only for the account given. (Note: In your answer to each part of this problem, consider this to be the only transaction that took place during 2003.)
1. Quale Company issued 200 shares of common stock in exchange for cash of $4,000.
a. Entry
b. Paid In Capital in Excess of Par, Common Stock
2. The company issued 200 shares of preferred stock at a price of $102 per share.
a. Entry
b. Paid In Capital in Excess of Par, Preferred Stock
3. The company issued 500 shares of common stock in exchange for a building. The common stock is not actively traded, but the building was recently appraised at $11,000.
a. Entry
b. Property, Plant, and Equipment
4. The company reacquired 1,000 shares of common stock from a stockholder for $23,000 and subsequently reissued the shares to a different investor for $21,500. (Note: Make two entries.)
a. Entries
b. Paid In Capital, Treasury Stock
5. The board of directors declared dividends of $75,000. This amount includes the currentyear dividend preference on preferred stock, with the remainder to be paid to common shareholders.
a. Entry
b. Retained Earnings