The stockholders’ equity section of Patrick Corporation’s balance sheet at December 31 is presented here:PATRICK CORPORATIONBalance Sheet (partial)Stockholders’ equityPaid-in capitalPreferred stock cumulative 10 000 shares authorized 6 000 shares issued and outstanding$600 000Common stock no par 750 000 shares authorized 600 000 shares issued6 000 000Total paid-in capital6 600 000Retained earnings1 358 000Total paid-in capital and retained earniings7 958 000Less: Treasury stock (4 000 common shares)(32 000)Total stockholders’ equity$7 926 000From a review of the stockholders’ equity section answer the following questions. How many shares of common stock are outstanding?Outstanding sharesshares Brief Exercise 215 Patrick Corporation is authorized to issue 1 000 000 shares of $1 par value common stock. During 2014 the company has the following stock transactions.Jan. 15Issued 700 000 shares of stock at $7 per share.Sept. 5Purchased 20 000 shares of common stock for the treasury at $8 per share.Dec. 6Declared a $0.50 per share dividend to stockholders of record on December 20 payable January 3 2015.Journalize the transactions for Patrick Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required select “No Entry” for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCredit Jan. 15Sept. 5Dec. 6 Jan. 15Sept. 5Dec. 6 Jan. 15Sept. 5Dec. 61.Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generallynot recorded until they become material in amount.expensed when incurred.capitalized as a part of the cost of the asset.debited to the Accumulated Depreciation account2.Mohling Company typically sells subscriptions on an annual basis and publishes eight times a year. The magazine sells 45 000 subscriptions in January at $10 each. What entry is made in January to record the sale of the subscriptions?Subscriptions Receivable450 000Subscription Revenue450 000Cash450 000Unearned Subscription Revenue450 000Subscriptions Receivable56 250Unearned Subscription Revenue56 250Prepaid Subscriptions450 000Cash450 000
