Question - Pringle Corporation has been authorized to issue 20,200 shares of $100 par value, 9%, noncumulative preferred stock and 1,184,700 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders' equity.
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Preferred Stock
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$164,900
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Paid-in Capital in Excess of Par Value-Preferred Stock
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21,610
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Common Stock
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2,090,000
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Paid-in Capital in Excess of Stated Value-Common Stock
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1,744,000
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Treasury Stock- (5,170 common shares)
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67,210
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Retained Earnings
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84,500
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The preferred stock was issued for $186,510 cash. All common stock issued was for cash. In November 5,170 shares of common stock were purchased for the treasury at a per share cost of $13. No dividends were declared in 2014.
Please provide the journal entries for the following.
(1) Issuance of preferred stock for cash.
(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.