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2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2015 and that Mason Company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you to prepare the company's journal entries and statement of owner's equity based on the following information which is grouped according to your surname name initial (T). (Hint!!!! Example surname Manuel will use the initial M and that person should only use the info presented in line with the heading with their surname initial. Please use information in the row with letter (T) Issued shares of common stock. Stock has par value of per share and was issued at $ per share. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial A, P, I, E, V C, O, R, Y |К, Q, М, F S, W, G, Z D, T, L, U |N, B, J, X, Н # of shares issued 5,000 $ 15,000 $ 45,500 $ 65,000 $ 80,000 $ 100,000 $ Par value Issue Price 0.01 $ 0.10 $ 0.30 $ 0.40 $ 0.50 $ 30.00 30.00 30.00 30.00 30.00 0.60 $ 30.00 Issued shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial А, Р, I, Е, V C, O, R, Y |К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H # of shares issued 2,000 5,000 8,000 10,000 12,000 14,000

2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2015 and that Mason Company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you to prepare the company's journal entries and statement of owner's equity based on the following information which is grouped according to your surname name initial (T). (Hint!!!! Example surname Manuel will use the initial M and that person should only use the info presented in line with the heading with their surname initial. Please use information in the row with letter (T) Issued shares of common stock. Stock has par value of per share and was issued at $ per share. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial A, P, I, E, V C, O, R, Y |К, Q, М, F S, W, G, Z D, T, L, U |N, B, J, X, Н # of shares issued 5,000 $ 15,000 $ 45,500 $ 65,000 $ 80,000 $ 100,000 $ Par value Issue Price 0.01 $ 0.10 $ 0.30 $ 0.40 $ 0.50 $ 30.00 30.00 30.00 30.00 30.00 0.60 $ 30.00 Issued shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial А, Р, I, Е, V C, O, R, Y |К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H # of shares issued 2,000 5,000 8,000 10,000 12,000 14,000

FINANCIAL ACCOUNTING
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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Please answer requirement 2. part a and b.

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• Exchanged shares of common stock for land with an appraised value of $ and a building with an appraised value of $ (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) # of shares issued Value of land Value of Building 450,000.00 500,000.00 650,000.00 700,000.00 350,000.00 500,000.00 Surname Initial А, Р , Е, V С, О, R, Y К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H 100,000 $ 250,000.00 $ 120,000 $ 300,000.00 $ 160,000 $ 400,000.00 $ 200,000 $ 500,000.00 $ 220,000 $ 600,000.00 $ 260,000 $ 650,000.00 $ Earned Net income $ (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial Net Income А, Р I, Е, V C, O, R, Y К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H $ 500,000.00 600,000.00 650,000.00 750,000.00 820,000.00 900,000.00 $ $ $ $ $ Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: A. Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend paid. Close out dividend to retained earnings. B. Prepare Mason Company's Stockholders equity section of the balance sheet at December 31, 2015. (Hint!!!!!!!) The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary. the sub total for the total paid in capital. Retained earnings. total stockholders' equity.
Transcribed Image Text:• Exchanged shares of common stock for land with an appraised value of $ and a building with an appraised value of $ (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) # of shares issued Value of land Value of Building 450,000.00 500,000.00 650,000.00 700,000.00 350,000.00 500,000.00 Surname Initial А, Р , Е, V С, О, R, Y К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H 100,000 $ 250,000.00 $ 120,000 $ 300,000.00 $ 160,000 $ 400,000.00 $ 200,000 $ 500,000.00 $ 220,000 $ 600,000.00 $ 260,000 $ 650,000.00 $ Earned Net income $ (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial Net Income А, Р I, Е, V C, O, R, Y К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H $ 500,000.00 600,000.00 650,000.00 750,000.00 820,000.00 900,000.00 $ $ $ $ $ Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: A. Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend paid. Close out dividend to retained earnings. B. Prepare Mason Company's Stockholders equity section of the balance sheet at December 31, 2015. (Hint!!!!!!!) The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary. the sub total for the total paid in capital. Retained earnings. total stockholders' equity.
Scenario: Mark Mason and his brother Luke Mason plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate form of operation will be best option. They have hired you as a consultant and seek your advice. Requirements: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained earnings: Similar? Different? b) What are the main categories of paid-in capital? c) When does a company declare a cash dividend? d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? e) What does the term par value of stock mean? 2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2015 and that Mason Company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you to prepare the company's journal entries and statement of owner's equity based on the following information which is grouped according to your surname name initial (T). (Hint!!!! Example surname Manuel will use the initial M and that person should only use the info presented in line with the heading with their surname initial. Please use information in the row with letter (T) Issued shares of common stock. Stock has par value of per share and was issued at $ per share. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) # of shares issued 5,000 $ 15,000 $ 45,500 $ 65,000 $ 80,000 $ 100,000 $ Surname Initial Par value Issue Price 0.01 $ 0.10 $ 0.30 $ А, Р, , Е, V C, O, R, Y К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H 30.00 30.00 30.00 0.40 $ 30.00 0.50 $ 0.60 $ 30.00 30.00 Issued shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial # of shares issued А, Р, [, Е, V С. О, R, Y К, Q, M, F S, W, G, Z D, T, L, U N, B, J, X, H 2,000 5,000 8,000 10,000 12,000 14,000
Transcribed Image Text:Scenario: Mark Mason and his brother Luke Mason plans to open a business. The major decision they face is how to organize the business. They expect to generate a massive profit during the first year. Although they have enough to start the business now as a partnership, they believe cash flow may be an issue as they grow. They believe that the corporate form of operation will be best option. They have hired you as a consultant and seek your advice. Requirements: 1. Answer the following questions for the Mason brothers. a) How are paid-in-capital and retained earnings: Similar? Different? b) What are the main categories of paid-in capital? c) When does a company declare a cash dividend? d) Which characteristic of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? e) What does the term par value of stock mean? 2. The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2015 and that Mason Company's charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked you to prepare the company's journal entries and statement of owner's equity based on the following information which is grouped according to your surname name initial (T). (Hint!!!! Example surname Manuel will use the initial M and that person should only use the info presented in line with the heading with their surname initial. Please use information in the row with letter (T) Issued shares of common stock. Stock has par value of per share and was issued at $ per share. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) # of shares issued 5,000 $ 15,000 $ 45,500 $ 65,000 $ 80,000 $ 100,000 $ Surname Initial Par value Issue Price 0.01 $ 0.10 $ 0.30 $ А, Р, , Е, V C, O, R, Y К, Q, М, F S, W, G, Z D, T, L, U N, B, J, X, H 30.00 30.00 30.00 0.40 $ 30.00 0.50 $ 0.60 $ 30.00 30.00 Issued shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below and use only the info in line with your surname initial (T) in the blank/underlined space) Surname Initial # of shares issued А, Р, [, Е, V С. О, R, Y К, Q, M, F S, W, G, Z D, T, L, U N, B, J, X, H 2,000 5,000 8,000 10,000 12,000 14,000
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