During 2014, Goodfellow has the following transactions involving its common and preferred stock:
a.Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares.
b.Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share.
c.When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share.
Required:
Prepare a journal entry for each transaction.

Question

During 2014, Goodfellow has the following transactions involving its common and preferred stock: 
a.Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares.
b.Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share.
c.When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share.
Required:
Prepare a journal entry for each transaction.

Quizplus · Accepted Answer

The Answer of During 2014, Goodfellow has the following transactions involving its common and preferred stock: 
a.Issued 15,000 shares of $5 par common stock for $15 a share. This brings total shares outstanding to 50,000 shares.
b.Issued 5,000 shares of $100 par, 6%, cumulative preferred stock for $121 per share.
c.When the market value of the common stock reached $15 a share, Goodfellow declared a 3-for-1 stock split, reducing the par value to $1.67 per share.
Required:
Prepare a journal entry for each transaction.

During 2014, Goodfellow Has the Following Transactions Involving Its Common