Pringle Corporation has been authorized to issue 22,400 sharesof $100 par value, 7%, noncumulative preferred stock and 1,042,700shares of no-par common stock.
The corporation assigned a $4 stated value to the common stock. AtDecember 31, 2014, the ledger contained the following balancespertaining to stockholders’ equity.
Preferred Stock
$167,900
Paid-in Capital in Excess of Par Value—Preferred Stock
22,470
Common Stock
2,080,000
Paid-in Capital in Excess of Stated Value—Common Stock
1,594,000
Treasury Stock— (5,860 common shares)
70,320
Retained Earnings
81,700
The preferred stock was issued for $190,370 cash. All common stockissued was for cash. In November 5,860 shares of common stock werepurchased for the treasury at a per share cost of $12. No dividendswere declared in 2014. Prepare the journal entries for thefollowing. (Credit account titles are automaticallyindented when amount is entered. Do not indentmanually.)
(1)
Issuance of preferred stock for cash.
(2)
Issuance of common stock for cash.
(3)
(3)Purchase of common treasury stock for cash.
Prepare the stockholders’ equity section of the balance sheet atDecember 31, 2014
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