Financial Accounting Assignment
Irwin Corporation has been authorized to issue 20,700 shares of $100 par value, 10%, noncumulative preferred stock and 1,034,280 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2015, the ledger contained the following balances pertaining to stockholders' equity.
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Preferred Stock
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$121,000
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Paid-in Capital in Excess of Par-Preferred Stock
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19,800
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Common Stock
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1,034,280
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Paid-in Capital in Excess of Stated Value-Common Stock
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1,836,000
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Treasury Stock (1,000 common shares)
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14,000
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Paid-in Capital from Treasury Stock
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500
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Retained Earnings
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83,000
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The preferred stock was issued for land having a fair value of $140,800. 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 $14. In December, 500 shares of treasury stock were sold for $15 per share. No dividends were declared in 2015.
(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.