Spangler Corporation's charter allows it to issue 25,000 shares of $100 parpreferred stock and 50,000 shares of $20 par common stock. The companyhad the following stock transactions during the past year:1. Issued 10,000 shares of common stock to the corporate founders inexchange for a building valued at $150,000 and equipment valued at$75.000.2. Sold 500 shares of preferred stock at $125 per share and 1,000 sharesof common stock at par to an investor.3. Sold 5.000 shares of common stock for $35 per share.4. Issued 2.000 shares of common stock with a market value of $40 pershare, and 750 shares of preferred stock with a market value of $145 pershare, for a lump sum of $200.000.5. Purchased at $25 per share, 2,000 shares of Spangler Corporationcommon stock.6. Sold 1,000 shares of treasury stock at $30 per share.7. Sold 1,000 shares of treasury stock at $18 per share.Instructions:Prepare journal entries for the transactions noted above. No other transactions have affected the stock accounts. Record all lump sum transactions using the proportional method and all treasury stock transactions using the cost method. Spangler Corporation's charter allows it to issue 25,000 shares of $100 parpreferred stock and 50,000 shares of $20 par common stock. The companyhad the following stock transactions during the past year:1. Issued 10,000 shares of common stock to the corporate founders inexchange for a building valued at $150,000 and equipment valued at$75,000.2. Sold 500 shares of preferred stock at $125 per share and 1,000 sharesof common stock at par to an investor.3. Sold 5,000 shares of common stock for $35 per share.4. Issued 2,000 shares of common stock with a market value of $40 pershare, and 750 shares of preferred stock with a market value of $145 pershare, for a lump sum of $200,000.5. Purchased at $25 per share, 2,000 shares of Spangler Corporationcommon stock.6. Sold 1,000 shares of treasury stock at $30 per share.7. Sold 1,000 shares of treasury stock at $18 per share.Instructions:Prepare journal entries for the transactions noted above. No othertransactions have affected the stock accounts. Record all lump sumtransactions using the proportional method and all treasury stocktransactions using the cost method.

Stockholder's Equity - Stockholder's Equity includes Common Stock, Preferred Stock, Paid in Capital,…

Answered: Spangler Corporation's charter allows…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

See similar textbooks

Related questions

Question

Spangler Corporation's charter allows it to issue 25,000 shares of $100 par
preferred stock and 50,000 shares of $20 par common stock. The company
had the following stock transactions during the past year:
1. Issued 10,000 shares of common stock to the corporate founders in
exchange for a building valued at $150,000 and equipment valued at
$75.000.
2. Sold 500 shares of preferred stock at $125 per share and 1,000 shares
of common stock at par to an investor.
3. Sold 5.000 shares of common stock for $35 per share.
4. Issued 2.000 shares of common stock with a market value of $40 per
share, and 750 shares of preferred stock with a market value of $145 per
share, for a lump sum of $200.000.
5. Purchased at $25 per share, 2,000 shares of Spangler Corporation
common stock.
6. Sold 1,000 shares of treasury stock at $30 per share.
7. Sold 1,000 shares of treasury stock at $18 per share.

Instructions:
Prepare journal entries for the transactions noted above. No other transactions have affected the stock accounts. Record all lump sum transactions using the proportional method and all treasury stock transactions using the cost method.

Expert Solution

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions