Asked by Jessica Biddle on Jun 22, 2024
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On April 1, 10,000 shares of $5 par common stock were issued at $22, and on April 7, 5,000 shares of $50 par preferred stock were issued at $104. Journalize the entries for April 1 and 7.
Treasury Stock
Shares that were once part of the floating stock of a company but were then repurchased and are held by the company itself.
Retained Earnings
The portion of a business's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay debt.
Net Income
The amount of profit remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue; also known as net profit.
- Catalog stock-related activities including issuing shares, dividend announcements, and treasury stock transactions.
- Gain an understanding of and evaluate the steps for issuing common and preferred equity.
- Assess the impact of stock activities on total invested capital and equity of stockholders.
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RD
Learning Objectives
- Catalog stock-related activities including issuing shares, dividend announcements, and treasury stock transactions.
- Gain an understanding of and evaluate the steps for issuing common and preferred equity.
- Assess the impact of stock activities on total invested capital and equity of stockholders.