Choctaw Co. completed the following transactions in Year 1, the first year of operation: 1. Issued 33,000 shares of $10 par common stock for $10 per share. 2. Issued 4,300 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 2,300 shares of common stock as treasury stock for $12 per share. 4. Declared a $3,300 cash dividend on preferred stock. 5. Sold 1,000 shares of treasury stock for $14 per share. 6. Paid $3,300 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $104,000 and incurred cash expenses of $54,000. 8. Appropriated $9,300 of retained earnings. Required a. Organize the transaction in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1.
Choctaw Co. completed the following transactions in Year 1, the first year of operation: 1. Issued 33,000 shares of $10 par common stock for $10 per share. 2. Issued 4,300 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 2,300 shares of common stock as treasury stock for $12 per share. 4. Declared a $3,300 cash dividend on preferred stock. 5. Sold 1,000 shares of treasury stock for $14 per share. 6. Paid $3,300 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $104,000 and incurred cash expenses of $54,000. 8. Appropriated $9,300 of retained earnings. Required a. Organize the transaction in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Choctaw Co. completed the following transactions in Year 1, the first year of operation:
1. Issued 33,000 shares of $10 par common stock for $10 per share.
2. Issued 4,300 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 2,300 shares of common stock as treasury stock for $12 per share.
4. Declared a $3,300 cash dividend on preferred stock.
5. Sold 1,000 shares of treasury stock for $14 per share.
6. Paid $3,300 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $104,000 and incurred cash expenses of $54,000.
8. Appropriated $9,300 of retained earnings.
Required
a. Organize the transaction in accounts under an accounting equation.
b. Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education