Carmen Company Is a Corporation That Has Issued Both Preferred

question 117

Essay

Carmen Company is a corporation that has issued both preferred and common stock. As of January 1, it had 50,000 shares of 2.75%, $100 par, preferred stock outstanding and 250,000 shares of $10 par common stock outstanding. Journalize the following transactions:?
(a) On January 31, the board of directors issues a requirement to purchase 5,000 shares of its common stock atmarket price. The shares are purchased at a market price of $22 per share.
(b) On March 15, Carmen declares a dividend on preferred stock of $2.75 per share. The date of record isMarch 25 and the date of payment is March 31.
(c) On December 1, Carmen declares a cash dividend on common stock of $0.12 per share. The date of record isDecember 15 and the date of payment is December 21.
(d) On December 27, the board orders that 2,500 shares of the treasury stock purchased in (a) be sold. The saleprice is $25 per share.

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Definitions:

Mental Retardation

An outdated and now considered offensive term for intellectual disability, characterized by limitations in intellectual functioning and adaptive behavior.

Adaptive Behavior

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A technique in which children are encouraged to come up with creative ideas in a group, play off one another’s ideas, and say practically whatever comes to mind.