The stockholders’ equity section of Fauberg Marigny Corporation at December 31 is as follows.
FAUBERG MARIGNY CORPORATION
Balance Sheet (partial)
Preferred stock, cumulative, 10,000 shares authorized,
5,000 shares issued and outstanding $ 300,000
Common Stock, no par, 750,000 shares authorized, 300,000 shares issued 1,500,000
Total paid-in capital 1,800,000
Retained earnings 2,050,000
Total paid-in capital and retained earnings 3,850,000
Less: Treasury stock (5,000 common shares) 64,000
Total stockholders' equity $3,786,000
From a review of the stockholders’ equity section, answer the following questions.
(a)How many shares of common stock are outstanding?
(b)Assuming there is a stated value, what is the stated value of the common stock?
(c)What is the par value of the preferred stock?
(d)If the annual dividend on preferred stock is $18,000, what is the dividend rate on preferred stock?
(e)If dividends of $36,000 were in arrears on preferred stock, what would be the balance in Retained Earnings?
On January 1, 2017, Vidalia Company issued 30,000 shares of $2 par value common stock for $150,000. On March 1, 2017, the company purchased 6,000 shares of its common stock for $8 per share for the treasury. On June 1, 2017, 1,500 of the treasury shares are sold for $10 per share. On September 1, 2017, 3,000 treasury shares are sold at $6 per share.
Journalize the stock transactions of Vidalia Company in 2017.
Roca Company originally issued 30,000 shares of $5 par common stock for $240,000 on January 3, 2017. Roca purchased 1,500 shares of treasury stock for $15,000 on November 2, 2017. On December 6, 2017, 600 shares of the treasury stock are sold for $7,200.
Prepare journal entries to record these stock transactions.