Question :
187. Wings Over San Diego a publicly traded company with preferred : 1234203
187. Wings Over San Diego is a publicly traded company with preferred and common stock issued. As of January 1st it had 50,000 shares of $100 par, 2% preferred stock outstanding and 250,000 shares of $10 par common stock outstanding.
(a)On January 31st the Board of Directors issues a requirement to purchase 5,000 shares of common stock at market price. The shares are purchased at a market price of $22 per share. Journalize the purchase utilizing the cost concept.
(b)On March 15th Wings Over San Diego declares a dividend on preferred stock of $2.00 per share. The date of record is March 25th and the date of payment is March 31st. Journalize these events.
(c)On December 1st Wings Over San Diego declares a cash dividend on common stock of $0.15 per share. The date of record is December 15th and the date of payment is December 21st. Journalize these events.
(d)On December 27th the board orders that 2,500 shares of treasury stock be sold. The sale price is $25 per share. Journalize this event.
188. A company has 10,000 shares of $10 par common stock outstanding. Present entries to record the following:
(a)Purchased 1,000 shares of treasury stock at $11. The treasury stock is accounted for by the cost method.
(b)Sold 500 shares of treasury stock at $15.
(c)Purchased equipment for $75,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the equipment.
(d)Sold 500 shares of treasury stock at $11.
189. A company has 10,000 shares of $10 par common stock outstanding. Present entries to record the following:
(a)Purchased 1,000 shares of treasury stock at $15. The treasury stock is accounted for by the cost method.
(b)Sold 500 shares of treasury stock at $16.
(c)Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the equipment.
(d)Sold 500 shares of treasury stock at $14.
190. Journalize the following selected transactions completed during the current fiscal year:
Jan. 3The board of directors reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 400,000.
22Declared a dividend of $2.00 per share on the outstanding shares of common stock.
Feb. 8Paid the dividend declared on January 22.
Sep. 1Declared a 5% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $30).
Oct. 1Issued the certificates for the common stock dividend declared on September 1.
191. Present entries to record the following selected transactions completed during the current fiscal year:
Feb. 1The board of directors reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 500,000.
11Purchased 25,000 shares of own stock at $45, recording the treasury stock at cost.
May 1Declared a dividend of $3 per share on the outstanding shares of common stock.
15Paid the dividend declared on May 1.
Oct. 19Declared a 2% stock dividend on the common stock outstanding (the fair market value of the stock to be issued is $55).
Nov. 12Issued the certificates for the common stock dividend declared on October 19.
