The Collyer Corporation authorizes the issuance of 5,000,000 shares of $1par common stock and 1,000,000 shares of 10%,$50 par cumulative preferred stock.Events affecting the stockholders' equity section during the first year of operations (2010)are listed below.
(1.)500,000 shares of common stock were issued for $20 per share.
(2.)25,000 shares of preferred stock were sold at $52 per share.
(3.)A building with a fair market value of $860,000 was acquired for a cash payment of
$200,000 and 30,000 shares of common stock.
(4.)3,000 shares of common stock were repurchased for $15 per share.
(5.)Reissued 1,000 shares of the treasury stock for $20 per share.
(6.)Collyer generated $1,500,000 of income its first year and paid no dividends.
Required:
(A.)Record the transaction described above.
(B.)Prepare the stockholders' equity section of Collyer Corporation.

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The Answer of The Collyer Corporation authorizes the issuance of 5,000,000 shares of $1par common stock and 1,000,000 shares of 10%,$50 par cumulative preferred stock.Events affecting the stockholders' equity section during the first year of operations (2010)are listed below.
(1.)500,000 shares of common stock were issued for $20 per share.
(2.)25,000 shares of preferred stock were sold at $52 per share.
(3.)A building with a fair market value of $860,000 was acquired for a cash payment of
$200,000 and 30,000 shares of common stock.
(4.)3,000 shares of common stock were repurchased for $15 per share.
(5.)Reissued 1,000 shares of the treasury stock for $20 per share.
(6.)Collyer generated $1,500,000 of income its first year and paid no dividends.
Required:
(A.)Record the transaction described above.
(B.)Prepare the stockholders' equity section of Collyer Corporation.

The Collyer Corporation Authorizes the Issuance of 5,000,000 Shares of $1par