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Accounting

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Question 2 5 pts The following selected accounts appear in the ledger of Montgomery Corp. on January 1 of the current fiscal year: $750,000 $32,000 Preferred 7% Stock, $75 par (20,000 shares authorized, 10,000 shares issued) Paid-In Capital in Excess of Par- Preferred Stock Common Stock, $8 par (82,000 shares authorized, 20,000 shares issued) Paid-In Capital in Excess of Par- Common Stock $160,000 $250,000 Retained Earnings $20,000 During the year, the corporation completed a number of transactions affecting stockholders' equity. Note 1: Montgomery Corp. uses the cost method for accounting for Treasury Stock. Note 2: Please use these specific accounts in your entries below. Cash Common Stock, Treasury Stock, Paid In Capital in Excess of Par - Common Stock, Paid In Capital Treasury Stock Cash Dividends, Dividends Payable. Do not use $ signs. Note 3: "Paid in Capital in Excess of Par.." is the same as Additional Paid in Capital or APIC 1. Complete the journal entry for the issuance of 5,000 shares of Montgomery Corp. common stock for cash at $25 per share on April 1. for cash at $25 per share on April 1. Dr. Cr. . Cr. 2. Complete the journal entry for the purchase of 5,000 shares of treasury common stock for $100,000 on June 1. Dr. Cr. 3 Using the information from Question 2, complete the journal entry for the sale of 1,000 shares of treasury common stock for $22.000 on July 15. Dr. Cr. treasury common stock for $22,000 on July 15. Dr. Cr. Cr. . 4. Using the information from Question 2complete the journal entry for the sale of 500 shares of treasury common stock for $9,000 on September 30 Dr. Dr. , Cr. 5. Using the information from Questions 1- 4 complete the journal entry for the Declaration of a tash dividend of $5.25 per share on preferred stock and $1 per share on common stock. Remember, dividends are not paid on the remaining shares held in the treasury Dr. Cr. Question 3 1 pts One of the main disadvantages of the corporate foon is the MacBook Air 20 3 88 ! FE - FB * # 3 $ 4 % 5 A 6 & 7 8 9 O E 70 T Y Y U o D F G H JK L C V B N. M 30 d Como

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