Question

Pepper Inc. had the following transactions for the year ended 2013.

During the year, Pepper Inc. Had 3,000 shares of $1 par value common stock issued and outstanding and 2000 shares of 9% $100 par value preferred stock. Transactions during the year are listed below

Date	Transaction
3/1	Sold 5,000 shares of no par common stock for $20 per share.
4/20	Sold 2,000 shares of $10 par value preferred stock for $40 per share.
6/25	Reacquired 2000 shares of stock for $25 per share.
7/30	Reissued 450 shares at $30 per share.
10/31	Declared a cash dividend of 2.00 per share to common and 48,000 to preferred stock holders as of 11/15.
12/10	Paid the cash dividend

Journalize the transactions listed above.

Answer 1

Journal Entries Worksheet
Date	General Journal	Debit	Credit
3/1	Cash (5,000 Shares X $ 20)	$100,000
	To Common Stock		$5,000
	To Addittional paid in capital - Common stock		$95,000
4/20	Cash (2,000 Shares X $ 40)	$80,000
	To Preferred Stock		$20,000
	To Addittional paid in capital - Common stock		$60,000
6/25	Treasurry Stock (2000 Shares X $ 25)	$50,000
	To Cash		$50,000
	Cash (450 Shares X $ 30)	$13,500
7/30	To Treasurry Stock (450 Shares x $ 25)		$11,250
	To Addittional paid in capital - Treasurry stock		$2,250
	Retained Earning	$60,900
10/31	To Dividend Payable		$60,900
12/10	Dividend Payable	$60,900
	To Cash		$60,900
	common stock outstading =
	Opening Stock =	3,000	Shares
	Sold	5,000	Shares
	Sold	-2,000	Shares
	Reissue	450	Shares
	Outstanding shares =	6,450	Shares
	Dividend on common stock = 6,450 Shares X $ 2 =	$12,900
	dividednd to preferred stock	$48,000
		$60,900