During 2014, Goodfellow Has the Following Transactions Involving Its Common

question 13

Essay

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.

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Definitions:

Herman and Heimovics

Scholars known for their contributions to theories and practices in leadership within nonprofit management.

Conflict of Interest

A situation in which an individual's personal interests could potentially interfere with their professional duties or responsibilities.

Legal Duties

Obligations imposed by law, requiring individuals or organizations to act in certain ways or adhere to specific rules or standards.

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The active engagement and involvement of board members in the governance and decision-making processes of an organization.