Diane's Designs Has Two Classes of Stock Authorized: 8%,$10 Par

question 67

Essay

Diane's Designs has two classes of stock authorized: 8%,$10 par preferred and $1 par value common.The following transactions affect stockholders' equity during 2015,its first year of operations:
January 1 Issue 200,000 shares of common stock for $15 per share.
February 6 Issue 1,000 shares of preferred stock for $11 per share.
October 10 Repurchase 10,000 shares of its own common stock for $18 per share.
November 12 Reissue 5,000 shares of treasury stock at $20 per share.
Record each of these transactions.

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Definitions:

Accounts Receivable

Accounts receivable is the money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Electronic Funds Transfer

A system that allows the transfer of money between bank accounts without the physical exchange of cash, checks, or other negotiable instruments.

Outstanding Checks

Checks that have been issued and recorded in the payer's financial statements but have not yet been cashed or cleared by the bank.

Bank Reconciliation

The method of aligning the figures in a company's financial records for a cash account with the relevant data on a bank statement.