Question

Problem 11-5A (Part Level Submission) Ayayai Corp. has been authorized to issue 19,000 shares of $100 par value, 6%, noncumulative preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $4 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $140,000 Paid-in Capital in Excess of Par Value—Preferred Stock 20,000 Common Stock 1,910,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,410,000 Treasury Stock (3,000 common shares) 24,000 Retained Earnings 80,000 Accumulated Other Comprehensive Income 48,000 The preferred stock was issued for $160,000 cash. All common stock issued was for cash. In November 3,000 shares of common stock were purchased for the treasury at a per share cost of $8. No dividends were declared in 2017. Collapse question part (a) Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (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. 2. 3. Click if you would like to Show Work for this question: Open Show Work

Answer 1

		Debit	Credit
1	Cash	160000
	Preferred Stock		140000
	Paid-in Capital in Excess of Par Value—Preferred Stock		20000
2	Cash	3320000
	Common Stock		1910000
	Paid-in Capital in Excess of Stated Value—Common Stock		1410000
3	Treasury Stock	24000
	Cash		24000