Question

Problem 11-05A Whispering Winds Corp. has been authorized to issue 20,600 shares of $100 par value, 7%, noncumulative preferred stock and 1,160,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2022, the ledger contained the following balances pertaining to stockholders' equity. Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (4,160 common shares) Retained Earnings Accumulated Other Comprehensive Income $156,000 21,600 1,990,000 1,570,000 41,600 83,600 49,600 The preferred stock was issued for $177,600 cash. All common stock issued was for cash. In November 4,160 shares of common stock were purchased for the treasury at a per share cost of $10. No dividends were declared in 2022.

Answer 1

Whisering Winds corp. Journal entries Cash 177600 Preferred stock PIC in excess of par Balance Sheet - shareholder's section 156000 21600 3560000 Cash Common stock PIC in excess of par 1990000 1570000 1990000 1570000 3560000 41600 Treasury stock Cash 41600 Shareholder's equity Paid In capital Common stock Common stock PIC in excess of par Common stock Preferred stock Preferred stock PIC in excess of par Preferred stock Total paid in Capital Add:- Retained Earnings Total paid in Capital and retained earnings Accumulated OCI Less:- Treasury stock ( 4160 common shares) Total Sharehoders's Equity 156000 21600 177600 37,37,600 83,600 38,21,200 49,600 41600 38,29,200