Milton Corporation was authorized to issue 10,000 shares of $50 par value, 4% preferred stock and 250,000 shares of $1 par value common stock. This assignment requires you to record the stock transactions for Milton Corporation for 2000 in the general journal.
Transactions for 2000
Jan. 1, 2000 Issued 100,000 shares of $1 par value common stock at $5 per share.
Jan. 1, 2000 Issued 2,000 shares of 4%, $50 par value preferred stock at $52 per share.
Dec. 31, 2000 The board of directors declared a dividend for one year on the $50, 4% preferred stock (2,000 shares issued) and of $0.20 per share on the shares of common stock (100,000 shares issued).
Transactions for 2001
Mar. 1, 2001 Paid the dividends declared in the previous transaction. Recall that the company declared a dividend for one year on the $50, 4% preferred stock (2,000 shares issued) and of $0.20 per share on the shares of common stock (100,000 shares issued).
June 25, 2001 Purchased 5,000 shares of its own $1 par value stock at $7 per share.
| DATE | ACCOUNT | DEBIT | CREDIT |
| 2000 | |||
| Jan. 1 | Cash
Common Stock Contributed Capital in Excess of Par – Common |
500,000
|
100,000 400,000 |
| Jan. 1 | Cash
Preferred Stock Contributed Capital in Excess of Par – Preferred |
104,000
|
100,000 4,000 |
| Dec. 31 | Dividends
Dividends Payable – Common Dividends Payable – Preferred |
24,000
|
20,000 4,000 |
| 2001 | |||
| Mar. 1 | Dividends Payable – Common
Dividends Payable – Preferred Cash |
20,000
4,000 |
24,000 |
| June 25 | Treasury Stock
Cash |
35,000
|
35,000 |
