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Unformatted text preview: $40 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock. 3) Preferred Stock Example: Harrison Corporation issued 10,000 shares of $10 par value cumulative 9% preferred stock on January 1, 2007 for $150,000. In December 2009, Harrison declared its first dividend of $60,000. a) Prepare Harrison's journal entry to record the issuance of the preferred stock. b) If the preferred stock is NOT cumulative, how much of the $60,000 would be paid to common stockholders? c) If the preferred stock is cumulative, how much of the $60,000 would be paid to common stockholders?...
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- Spring '11