Problem 13-6AIrwin Corporation has been authorized to issue 20,80.docx
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Irwin Corporation can issue 20,800 shares of preferred stock and 981,000 shares of common stock, with the preferred stock issued for land valued at $142,900. By December 31, 2014, various stockholder equity components included preferred stock valued at $119,000, common stock at $981,000, and retained earnings of $81,600. The company engaged in treasury stock transactions, purchasing 1,500 shares and selling 500 shares, with no dividends declared for the year.
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Problem 13-6AIrwin Corporation has been authorized to issue 20,80.docx
- 1. *Problem 13-6A Irwin Corporation has been authorized to issue 20,800 shares of $100 par value, 10%, noncumulative preferred stock and 981,000 shares of no-par common stock. The corporation assigned a $2.50 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders’ equity. The preferred stock was issued for land having a fair value of $142,900. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $14. In December, 500 shares of treasury stock were sold for $15 per share. No dividends were declared in 2014. Preferred Stock $119,000 Paid-in Capital in Excess of Par—Preferred Stock 23,900 Common Stock 981,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,781,300 Treasury Stock (1,000 common shares) 14,000 Paid-in Capital from Treasury Stock 500 Retained Earnings 81,600