Question

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations:

  

January 1 Issue 200,000 shares of common stock for $13 per share.

February 6 Issue 900 shares of preferred stock for $14 per share.

October 10 Repurchase 8,000 shares of its own common stock for $18 per share.

November 12 Reissue 4,000 shares of treasury stock at $22 per share.

Record each of these transactions

Answer 1

1-Jan	Cash	2600000		=200000*13
	Common Stock		200000	=200000*1
	Paid in capital in excess of par-Common Stock		2400000
6-Feb	Cash	12600		=900*14
	Preferred Stock		9000	=900*10
	Paid in capital in excess of par-Preferred Stock		3600
10-Oct	Treasury stock	144000		=8000*18
	Cash		144000
12-Nov	Cash	88000		=4000*22
	Treasury stock		72000	=4000*18
	Paid in capital-Treasury stock		16000