During 2016, Goodfellow Has the Following Transactions Involving Its Common

question 45

Essay

During 2016, 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 and 100,000 shares are authorized.
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.

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Definitions:

Reflexively Duck

An automatic, quick response to move or lower the head to avoid a hazard or threat.

Reticular Formation

A complex network of nerve pathways within the brainstem involved in consciousness and the regulation of sleep-wake cycles.

Thalamus

A brain region that acts as a relay station, processing and transmitting information from the sensory organs to the appropriate areas of the brain.

Cerebellar Cortex

The outer layer of the cerebellum, involved in the coordination of voluntary movements and balance.