Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par value preferred stock ($4 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders' equity occurred:July1Issued 32,000 shares of common stock at $18 cash per share. 12Issued 3,600 shares of common stock in exchange for equipment with a fair market value of $64,000. 15Issued 6,000 shares of preferred stock for cash at $45 per share. Requireda. Prepare journal entries to record the foregoing transactions.General JournalDateDescriptionDebitCreditJul.01AnswerAnswerAnswer AnswerAnswerAnswer Paid-in-Capital in Excess of Par Value - Common StockAnswerAnswer Issued shares of common stock. Jul.12AnswerAnswerAnswer Common StockAnswerAnswer AnswerAnswerAnswer Issued common stock for equipment. Jul.15AnswerAnswerAnswer AnswerAnswerAnswer Issued shares of preferred stock. b. Prepare the stockholders' equity section of the balance sheet at July 31. The net income for July is $39,000.Stockholders' Equity Paid in Capital AnswerAnswer AnswerAnswerAnswer Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Common Stock Answer Answer

The question asks for accounting for stockholders' equity in the company's books. The journal…

Answered: Beaker Corporation was organized on…

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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Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par value preferred stock ($4 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders' equity occurred:

July	1	Issued 32,000 shares of common stock at $18 cash per share.
	12	Issued 3,600 shares of common stock in exchange for equipment with a fair market value of $64,000.
	15	Issued 6,000 shares of preferred stock for cash at $45 per share.

Required

a. Prepare journal entries to record the foregoing transactions.

General Journal
Date	Description	Debit	Credit
Jul.01	Answer	Answer	Answer
	Answer	Answer	Answer
	Paid-in-Capital in Excess of Par Value - Common Stock	Answer	Answer
	Issued shares of common stock.
Jul.12	Answer	Answer	Answer
	Common Stock	Answer	Answer
	Answer	Answer	Answer
	Issued common stock for equipment.
Jul.15	Answer	Answer	Answer
	Answer	Answer	Answer
	Issued shares of preferred stock.

b. Prepare the stockholders' equity section of the balance sheet at July 31. The net income for July is $39,000.


Paid in Capital
Answer	Answer
Answer	Answer	Answer
Additional Paid-in-Capital
Paid-in-Capital in Excess of Par value - Common Stock		Answer
Answer

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