56pershare after the repurchase of the treasury stock

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Unformatted text preview: Cash (+A) (+SE) Capital, 10% Preferred Stock (+SE) 3,800 Preferred Stock (10%) 2,000 Additional Paid­In 1,800 Issued preferred stock. (3 ) Cash (+A) Paid­In Capital, Treasury Stock (+SE) Reissued treasury stock. (4 ) 10% Preferred Cash Dividend (–SE) 660 Treasury Stock (+SE) 360 Additional 300 750a Dividends Payable (+L) 750 Declared cash and stock dividend. a Cumulative preferred dividends are paid first. Since no dividends have been paid since 1998, dividends in arrears in the amount of $1,000 (10 years of 10% of par value) on the 10% cumulative Preferred stock must be paid before any dividends can be paid on any other shares. The entire $750 payment goes to the cumulative shares. (5 ) Dividends Payable (–L) 750 Cash (–A) 750 Paid and issued dividend. (6 ) No journal entry is needed. A memorandum entry should be made stating that the company's common stock now has a par value of $.50 per share and that 7,000 shares are now issued and 840 shares [after the events underlying entries (1) and (3)] are held in treasury. P12–9 b. Concluded Preferred stock (10%, $10 par value, cumulative) Preferred stock (12%, $10 par value, noncumulative)...
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This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

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