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Homework answers / question archive / Whispering Winds Corp
Whispering Winds Corp. has been authorized to issue 20,600 shares of $100 par value, 7%, noncumulative preferred stock and 1,160,000 shares of no-par common stock.
The corporation assigned a $5 stated value to the common stock. At December 31, 2022, the ledger contained the following balances pertaining to stockholders' equity.
Preferred Stock$156,000
Paid-in Capital in Excess of Par Value—Preferred Stock21,600
Common Stock1,990,000
Paid-in Capital in Excess of Stated Value—
Common Stock 1,570,000
Treasury Stock (4,160 common shares) 41,600
Retained Earnings83,600
Accumulated Other Comprehensive Income 49,600
The preferred stock was issued for $177,600 cash. All common stock issued was for cash. In November 4,160 shares of common stock were purchased for the treasury at a per share cost of $10. No dividends were declared in 2022.
Can you help me with Journaling
(1)Issuance of preferred stock for cash.
(2)Issuance of common stock for cash.
(3)Purchase of common treasury stock for cash.
| Journal Entries: | |||
| No | Account Titles and Explanation | Debit | Credit |
| 1 | Cash | 177600 | |
| Preferred Stock | 156000 | ||
| Paid-in Capital in Excess of Par Value-Preferred Stock | 21600 | ||
| (Issuance of preferred stock for cash) | |||
| 2 | Cash | 3560000 | |
| Common Stock | 1990000 | ||
| Paid-in Capital in Excess of Stated Value-Common Stock | 1570000 | ||
| (Issuance of common stock for cash) | |||
| 3 | Treasury Stock | 41600 | |
| Cash | 41600 | ||
| (Purchase of common treasury stock for cash) | |||
