Question

Blossom Company had these transactions during the current period.

June 12 Issued 82,000 shares of $1 par value common stock for cash of $307,500.
July 11 Issued 3,700 shares of $101 par value preferred stock for cash at $105 per share.
Nov. 28 Purchased 2,450 shares of treasury stock for $8,800.

Prepare the journal entries for the Blossom Company transactions shown above.

Answer 1

june 12 $82,000 ( credit ) $82,000 ( credit ) $225500 ( credit )

july 11 388500 ( deposit ) 373700 ( credit ) $14800 ( credit )

Nov. 28 $8,800 ( deposit ) $8,800 ( credit )

Step-by-step explanation:

Given data

June 12 share = 82,000 @ $1 par value

cash = $307,500

July 11 share = 3,700

par value = $101

per share = $105

Nov. 28 Purchased share = 2,450

treasury stock = $8,800

to find out

Prepare the journal entries

solution

first we calculate for june 12

cash is $307,500 ( deposit )

common stock = 82,000 × 1 = $82,000 ( credit )

so paid capital = 307,500 - 82,000 = $225500 ( credit )

and

for july 11

cash = 3700 × 105 = 388500 ( deposit )

preferred stock = 3700 × 101 = 373700 ( credit )

so paid capital = 388500 - 373700 = $14800 ( credit )

and

for November 28

cash = $8,800 ( deposit )

treasury stock = $8,800 ( credit )