kExercise 11-9A (Algo) Recording and reporting common and preferred stock transactions LO 11-4Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 400,000 shares of $8 par common stock and25,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The followingstock transactions pertain to Eastport Incorporated:a. Issued 21,000 shares of common stock for $13 per share.b. Issued 6,000 shares of the class A preferred stock for $30 per share.c. Issued 59,000 shares of common stock for $16 per share.RequiredPrepare the stockholders' equity section of the balance sheet immediately after these transactions.EASTPORT INCORPORATEDBalance Sheet (partial)For the Year Ended Year 1Stockholders' EquityPaid-in capital in excess of par, CSCommon stockPreferred stockTotal Paid-In CapitalTotal stockholders' equity$$00Next

corporated was organized on June 5, Year 1. It was authori res of 5 percent cumulative class A preferred stock. The actions pertain to Eastport Incorporated: 1,000 shares of common stock for $13 per share. 5,000 shares of the class A preferred stock for $30 per sha 59,000 shares of common stock for $16 per share.

corporated was organized on June 5, Year 1. It was authori res of 5 percent cumulative class A preferred stock. The actions pertain to Eastport Incorporated: 1,000 shares of common stock for $13 per share. 5,000 shares of the class A preferred stock for $30 per sha 59,000 shares of common stock for $16 per share.

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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Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Eastport Incorporated during Year 1: 1.Issued 15,000 shares of common stock for $12 per share. 2.Issued 5,000 shares of the class A preferred stock for $51 per share. Repurchased as treasury stock 500 shares of common stock for $8 per share. Sold 100 shares of treasury stock for $14 per share. Declared a $130,000 total dividend. Paid the dividend, with appropriate amounts going to preferred stock and common stock investors. Eastport reported a $479,000 net income for the year. Required Prepare general journal entries for these transactions. What amount of dividends went to common stock shareholders & preferred stock shareholders? Prepare the stockholders’ equity section of the balance sheet…
The stockholders’ equity of Skowski Company on June 30, 20x7, was as follows: Stockholders’ equity transactions in the next fiscal year were as follows: The board of directors declared a 2-for-1 stock split. The board of directors obtained authorization to issue 50,000 shares of $100 par value, 6 percent noncumulative preferred stock, callable at $104. Issued 12,000 shares of common stock for a building appraised at $96,000. Purchased 8,000 shares of the company’s common stock for $64,000. Issued 20,000 shares of preferred stock for $100 per share. Sold 5,000 shares of treasury stock for $35,000. Declared cash dividends of $6 per share on preferred stock and $.20 per share on common stock. Declared a 10 percent stock dividend on common stock to be distributed after the end of the fiscal year. The market value was $10 per share. Closed net income for the year, $340,000. Closed the Dividends and Stock Dividends accounts to Retained Earnings. Required: Record the stockholders’ equity…
EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 8% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 1,500 shares of its own common stock at $12 per share. Apr. 10 Reissued 750 shares of its common stock held in the treasury for $16 per share. Jun. 12 Reissued 750 shares of common stock at $10 per share. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Apr. 10 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 Jun. 12 fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 fill in the…
MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It is also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transactions: May 1 Issued 3,000 shares of preferred stock for cash at $750 per share May 23 Issued 6,000 shares of common stock at $12.50 per share Jun. 10 Issued 5,000 shares of common stock for equipment without a readily determinable value. The stock is currently trading at $11 per share Journalize the transactions.
Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 370,000 shares of $9 par common stock and 60,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $25 per share. The following stock transactions pertain to Eastport Incorporated: Issued 25,000 shares of common stock for $14 per share. Issued 14,000 shares of the class A preferred stock for $30 per share. Issued 49,000 shares of common stock for $17 per share. Requireda. Prepare general journal entries for these transactions.b. Prepare the stockholders’ equity section of the balance sheet immediately after these transactions.
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Wingra Corporation was organized in March. It is authorized to issue 550,000 shares of $100 par value 10% preferred stock. It is also authorized to issue 750,000 shares of $1 par value common stock. In its first year, the corporation has the following transactions: Mar. 1 Issued 20,000 shares of preferred stock at $115 per share. Mar. 2 Issued 150,000 shares of common stock at $13 per share. Apr. 10 Issued 15,000 shares of common stock for equipment valued at $198,000. The stock is currently trading at $12 per share, and is a more reliable indicator of the value of the equipment. Jun. 12 Issued 12,000 shares of common stock at $15 per share. Aug. 5 Issued 1,000 shares of preferred stock at $112 per share. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 Mar.…
Early in the year Debra Deal and several friends organized a corporation called Markup, Inc. The corporation was authorized to issue 100,000 shares of $100 par value, 5 percent cumulative pre- ferred stock and 100,000 shares of $1 par value common stock. The following transactions (among others) occurred during the year: Jan. 7 Issued for cash 30,000 shares of common stock at $10 per share. The shares were PROBLEM 11.4B Stockholders Equity: A Short Comprehensive Problem issued to Deal and four other investors. Jan. 12 Issued an additional 1,000 shares of common stock to Deal in exchange for her ser- vices in organizing the corporation. The stockholders agreed that these services were worth $12,000. Jan, 18 Issued 4,000 shares of prefered stock for cash of $400,000, July 5 Acquired land as a building site in exchange for 10,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued…
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