Question

Problem 11-6A Windsor, Inc. has been authorized to issue 20,000 shares of $100 par value, 10%, noncumulative preferred stock and 1,090,700 shares of no-par common stock. The corporation assigned a $2.60 stated value to the common stock. At December 31, 2019, the ledger contained the following balances pertaining to stockholders' equity Preferred Stock Pald-in Capital in Excess of Par-Preferred Stock Common Stock Pald-in Capital in Excess of Stated Value-Common Stock Treasury Stock (367 common shares) Pald-in Capital from Treasury Stock Retained Earnings Accumulated Other Comprehensve Income $120,000 24,000 1,090,700 1,761,900 4,037 80,000 4.000 The preferred stock was issued for land having for value of $144,000. All common stock issued was for cash, la November, 550 shares of common stock were purchased for the treasury at a per share cost of $11. in December, 183 shares of treasury stock were sold for $14 perare. No dividends were dedare in 2019. Prepare the yournal entries for the following: (Credit account titles are automatically indented when amount is entered De not indent manually. I ne entry is required, select "No Entry for the account tities and enter for the amounts) (1) T ance of preferred to for and (2) Issuance of common stock for cash (2) Purchase of common treasury stock for cash (4) Sale of treasury stock for cash

Answer 1

Windsor Inc.				-
Date	Account	Debit	Credit	Calculation
1	Land	144,000
	Preferred Stock		120,000
	Paid in Capital in Excess of Par-PS		24,000
2	Cash	2,852,600
	Common Stock		1,090,700
	Paid in Capital in Excess of Stated Value-CS		1,761,900
3	Treasury Stock	6,050		=550*11
	Cash		6,050
4	Cash	2,562		=183*14
	Treasury Stock		2,013	=183*11
	Paid in Capital from Treasury Stock		549

Windsor Inc. Balance Sheet - Partial As of December 31, 2019 1,090,700 120,000 1,210,700 Stockholders Equity Paid in capital Capital Stock Common Stock Preferred Stock Total Capital Stock Additional Paid in capital Paid in Capital in Excess of Stated Value-Common Stock Paid in Capital in Excess of Par-Preferred Stock Paid in Capital from Treasury Stock Total Additional Paid in Capital Total Paid in Capital Retained Earnings Total Paid in Capital & Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock Total Stockholders Equity 1,761,900 24,000 549 1,786,449 2,997,149 80,000 3,077,149 66,000 (4,037) 3,139,112