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In late 20X2, the Pickins Corporation was formed. The articles of incorporation authorize 5,000,000 shares of...

In late 20X2, the Pickins Corporation was formed. The articles of incorporation authorize 5,000,000 shares of common stock carrying a $1 par value, and 1,000,000 shares of $5 par value preferred stock.

On January 1, 20X3, 2,000,000 shares of common stock are issued for $15 share. Also on this date, 500,000 shares of preferred stock are issued at $30 per shares.

  1. Prepare journal entries to record the above issuance of common stock and preferred stock on January 1, 20X3

During March 20X3, the Pickins Corporation repurchased 100,000 common shares for the treasury at a price of $13 per share.   During August 20X3, all 100,000 treasury shares are reissued at $16 per share.

  1. Prepare journal entries to record the purchase of the treasury shares in March 20X3 and the reissuance of the shares in August 20X3.
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