Atkins Corporation was authorized to issue 20,000 shares of $25 par value, 6% preferred stock and 100,000 shares of $5 par value common stock. This assignment requires you to record the stock transactions for Atkins Corporation for 2000 and 2001 in the general journal.
Transactions for 2000
Jan. 1 Issued 30,000 shares of $5 par value common stock at $8 per share.
Jan. 1 Issued 4,000 shares of $25 par value preferred stock at $30 per share.
Dec. 31 The board of directors declared a dividend for one year on the $25, 6% preferred stock (4,000 shares issued) and of $0.30 per share on the shares of common stock (30,000 shares issued).
Transactions for 2001
Mar. 7 Paid the dividends declared in the previous transaction. Recall that the company declared a dividend for one year on the $25, 6% preferred stock (4,000 shares issued) and of $0.30 per share on the shares of common stock (30,000 shares issued).
Jun.. 25 Purchased 1,000 shares of its own $5 par value stock at $9 per share.
| DATE | ACCOUNT | DEBIT | CREDIT |
| 2000 | |||
| Jan. 1 | Cash
Common Stock Contributed Capital in Excess of Par – Common |
240,000
|
150,000 90,000 |
| Jan. 1 | Cash
Preferred Stock Contributed Capital in Excess of Par – Preferred |
120,000
|
100,000 20,000 |
| Dec. 31 | Dividends
Dividends Payable – Common Dividends Payable – Preferred |
15,000
|
9,000 6,000 |
| 2001 | |||
| Mar. 7 | Dividends Payable – Common
Dividends Payable – Preferred Cash |
9,000
6,000 |
15,000 |
| Jun. 25 | Treasury Stock
Cash |
9,000
|
9,000 |
