Problem 11-5 A Pringle Corporation has been authorized to issue 23 700 shares of $100 par value 9% noncumulative preferred stock and 1 023 600 shares of no-par common stock.The corporation assigned a $4 stated value to the common stock. At December 31 2014 the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock$154 200Paid-in Capital in Excess of Par Value—Preferred Stock21 350Common Stock2 190 000Paid-in Capital in Excess of Stated Value—Common Stock1 687 000Treasury Stock— (4 860 common shares)38 880Retained Earnings84 300The preferred stock was issued for $175 550 cash. All common stock issued was for cash. In November 4 860 shares of common stock were purchased for the treasury at a per share cost of $8. No dividends were declared in 2014.Prepare the journal entries for the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)(1)Issuance of preferred stock for cash.(2)Issuance of common stock for cash.(3)Purchase of common treasury stock for cash.No.Account Titles and ExplanationDebitCredit1.2.3.Show List of AccountsPrepare the stockholders’ equity section of the balance sheet at December 31 2014.PRINGLE CORPORATIONPartial Balance SheetDecember 31 2014$$$
