Beamsley Corporation was organized in 2020 to operate a financial consulting business. The charter authorized 12,000 common shares, no par value. During the first year, the following selected transactions were completed: Issued 6,200 shares of common shares for cash at $22 per share. Issued 2,200 shares of common shares for cash at $25 per share. Required: 1. Show the effects of each transaction on the accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) 2. Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Prepare the shareholders' equity section as it should be reported on the 2020 year-end balance sheet. At year- end, the accounts reflected a profit of $100. 4-a. Beamsley Corporation has $30,000 in the company's bank account. Should the company declare cash dividends at this time? multiple choice Yes No
Beamsley Corporation was organized in 2020 to operate a financial consulting business. The charter authorized 12,000 common shares, no par value.
During the first year, the following selected transactions were completed: Issued 6,200 shares of common shares for cash at $22 per share. Issued 2,200 shares of common shares for cash at $25 per share. Required: 1.
Show the effects of each transaction on the
equation. (Enter any decreases to Assets, Liabilities, or
no entry is required for a transaction/event, select "No
journal entry required" in the first account field.) 3.
Prepare the shareholders' equity section as it should be reported on the 2020 year-end
Step by step
Solved in 3 steps
