1. The company is desirous of comparing several financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Prepare the company's journal entries and statement of owner's equity. Based on the following information: Issued 65,000 shares of common stock. Stock has par value of $0.40 per share and was issued at $30.00per share. Issued 10,000 shares of preferred stock at par value as payment in exchange for legal services. • Exchanged 200,000 shares of common stock for land with an appraised value of $500,000.00 and a building with an appraised value of $700,000.00. Earned Net income $750,000.00. Paid dividends to preferred shareholders as well as $2 per share to common stockholders.

1. The company is desirous of comparing several financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Prepare the company's journal entries and statement of owner's equity. Based on the following information: Issued 65,000 shares of common stock. Stock has par value of $0.40 per share and was issued at $30.00per share. Issued 10,000 shares of preferred stock at par value as payment in exchange for legal services. • Exchanged 200,000 shares of common stock for land with an appraised value of $500,000.00 and a building with an appraised value of $700,000.00. Earned Net income $750,000.00. Paid dividends to preferred shareholders as well as $2 per share to common stockholders.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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