P15-1B (Equity Transactions and Statement Preparation) On April 21, 2014, Alligator Corporation received a charter granting the right to issue 100,000 shares of $100 par value, 6% cumulative and nonparticipating preferred stock, and 1,000,000 shares of $1 par value common stock. It then
Issued 100,000 shares of common stock at $23 per share.
Issued 6,000 shares of preferred stock to Thevenot Corporation for the following assets: equipment with a fair value of $76,000; a warehouse with a fair value of $240,000; and land with an appraised value of
Purchased 750 shares of common stock at $26 per share. (Use cost method.)
Sold the 750 treasury shares at $27 per share.
Declared a $0.10 per share cash dividend on the common stock and declared the preferred dividend.
Closed the Income Summary account. There was a $96,900 net income.
(a) Record the journal entries for the transactions listed above.
(b) Prepare the stockholders’ equity section of Alligator Corporation’s balance sheet as of December 31, 2014.
P15-2B (Treasury Stock Transactions and Presentation) LLP Company had the following stockholders’ equity as of January 1, 2014.
Common stock, $1 par value, 120,000 shares issued
Paid-in capital in excess of par—common stock
Total stockholders’ equity
During 2014, the following transactions occurred.
LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
200 shares of treasury stock repurchased above were reissued at $16 per share.
800 shares of treasury stock repurchased above were reissued at $12 per share.
2,000 shares of treasury stock repurchased above were reissued at $18 per share.