Problem - Irwin Corporation has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,092,000 shares of no-par common stock. The corporation assigned a $2.80 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders' equity.
Preferred Stock$130,000Paid-in Capital in Excess of Par-Preferred Stock11,000Common Stock1,092,000Paid-in Capital in Excess of Stated Value-Common Stock1,248,000Treasury Stock (900 common shares)9,900Paid-in Capital from Treasury Stock1,350Retained Earnings83,000
The preferred stock was issued for land having a fair value of $141,000. All common stock issued was for cash. In November, 1,350 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 450 shares of treasury stock were sold for $14 per share. No dividends were declared in 2017.
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.
Prepare the stockholders' equity section at December 31, 2017.