Ballard Corporation received its corporate charter on January 2, 2013. The charter authorized the following classes of capital stock: Preferred stock, $100 par value, 10% cumulative, 50,000 shares Common stock, $5 par value, 500,000 shares. During 2013, the following transactions occurred: Jan. 4 Issued 5,000 shares of common stock to each of the three incorporators at $20 per share. Cash was received in full from two of the incorporators; the third incorporator received common stock for legal services he performed for the corporation. 18 Sold 6,000 shares of preferred stock for $105 per share. Apr. 6 Sold 60,000 shares of common stock for $26 per share. Aug. 10 Issued 12,000 shares of common stock in exchange for land. The market value of the common stock on that date was $30 per share, and the appraised value of the land was $380,000. Oct. 12 Declared the annual dividend on the preferred stock. 3 Nov. 15 Paid the preferred stock dividend. Dec. 31 Closed the $186,000 credit balance in the Income Summary account. 31 Closed the balance in the Dividend Declared account. Required: A. Prepare journal entries to record the transactions. B. Prepare the stockholders’ equity section of the December 31, 2013, balance sheet.
Ballard Corporation received its corporate charter on January 2, 2013. The charter authorized the following classes of capital stock: Preferred stock, $100 par value, 10% cumulative, 50,000 shares Common stock, $5 par value, 500,000 shares. During 2013, the following transactions occurred: Jan. 4 Issued 5,000 shares of common stock to each of the three incorporators at $20 per share. Cash was received in full from two of the incorporators; the third incorporator received common stock for legal services he performed for the corporation. 18 Sold 6,000 shares of preferred stock for $105 per share. Apr. 6 Sold 60,000 shares of common stock for $26 per share. Aug. 10 Issued 12,000 shares of common stock in exchange for land. The market value of the common stock on that date was $30 per share, and the appraised value of the land was $380,000. Oct. 12 Declared the annual dividend on the preferred stock. 3 Nov. 15 Paid the preferred stock dividend. Dec. 31 Closed the $186,000 credit balance in the Income Summary account. 31 Closed the balance in the Dividend Declared account. Required: A. Prepare journal entries to record the transactions. B. Prepare the stockholders’ equity section of the December 31, 2013, balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ballard Corporation received its corporate charter on January 2, 2013. The charter authorized the following classes of capital stock: Preferred stock , $100 par value, 10% cumulative, 50,000 shares Common stock, $5 par value, 500,000 shares. During 2013, the following transactions occurred: Jan. 4 Issued 5,000 shares of common stock to each of the three incorporators at $20 per share. Cash was received in full from two of the incorporators; the third incorporator received common stock for legal services he performed for the corporation. 18 Sold 6,000 shares of preferred stock for $105 per share. Apr. 6 Sold 60,000 shares of common stock for $26 per share. Aug. 10 Issued 12,000 shares of common stock in exchange for land. The market value of the common stock on that date was $30 per share, and the appraised value of the land was $380,000. Oct. 12 Declared the annual dividend on the preferred stock. 3 Nov. 15 Paid the preferred stock dividend. Dec. 31 Closed the $186,000 credit balance in the Income Summary account. 31 Closed the balance in the Dividend Declared account. Required: A. Prepare journal entries to record the transactions. B. Prepare the stockholders’ equity section of the December 31, 2013, balance sheet.
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