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Problem 11-5A Pringle Corporation

Problem 11-5A

Pringle Corporation has been authorized to issue 23,900 shares of $100 par value, 7%, noncumulative preferred stock and 1,129,900 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.

Preferred Stock

$155,000

Paid-in Capital in Excess of Par Value—Preferred Stock

20,860

Common Stock

2,000,000

Paid-in Capital in Excess of Stated Value—Common Stock

1,705,000

Treasury Stock— (4,590 common shares)

45,900

Retained Earnings

80,900

The preferred stock was issued for $175,860 cash. All common stock issued was for cash. In November 4,590 shares of common stock were purchased for the treasury at a per share cost of $10. No dividends were declared in 2014.

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Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)

Issuance of preferred stock for cash.

(2)

Issuance of common stock for cash.

(3)

Purchase of common treasury stock for cash.

No.

Account Titles and Explanation

Debit

Credit

1.

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2.

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3.

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.wiley.com/edugen/shared/assignment/test/qview.uni?id=quest2378805entrance1&selected_question=quest2378805&operation=take-question” title=”Link to Text 3″>Link to Text

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Prepare the stockholders’ equity section of the balance sheet at December 31, 2014.

PRINGLE CORPORATION
Partial Balance Sheet
December 31, 2014

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