Wings Over San Diego is a publicly traded companywith preferred and common stock issued. As of January 1st ithad 50,000 shares of $100 par, 2% preferred stock outstanding and250,000 shares of $10 par common stock outstanding.
a. On January 31st the board of directors issues arequirement to purchase 5,000 shares of common stock at marketprice. The shares are purchased at a market price of $22 pershare. Journalize the purchase utilizing the costconcept.
b. On March 15th Wings Over San Diego declares adivident on preferred stock of $2.00 per share. The date ofrecord is March 25th and the date of payment is March 31st. Journalize these events.
c. On December 1st Wings Over San Diego declares a cashdivident on common stock of $0.15 per share. The date ofrecord is December 15th and the date of payment is December21st. Journalize these events.
d. On December 27th the board orders that 2,500 sharesof treasury stock be sold. The sale price is $25 pershare. Journalize this event.
27. A company has 10,000 shares of $10 par common stockoutstanding. Present entries to record the following:
a. Purchased 1,000 shares of treasury stock at$13. The treasury stock is accounted for by the costmethod.
b. Sold 500 shares of treasury stock at $15
c. Purchased equipment for $75,000, paying $25,000 incash and issuing 4,000 shares of common stock for theequipment.
d. Sold 500 shares of treasury stock at $11
28. Journalize the following selected transactionscompleted during the current fiscal year:
Jan 3
The board of directors reduced the par of common shares from$100 to $20. This action increased the number of outstandingshares to 400,000
Jan 22
Declared a dividend of $2.00 per share on the outstandingshares on common stock.
Feb 8
Paid the dividend declared on Jan 22
Sep 1
Declared a 5% stock dividend on the common stock outstanding(the fair market value of the stock to be issued is $30)
Oct 1
Issued the certificates for the common tock dividend declaredon September 1