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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