Corporation Accounting The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60% shares of class A common stock. Stock has par value of 48 per share and was issued at $ 105 per share 2. Issued 60% shares of no-par class B stock at 98 3. Issued 20% shares of preferred stock at par value at $168 4. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000.000 and Motor Truck with an appraised value of $10,000.000. 5. Earned Net income $1,450,000.00. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders A. Using the info above and as a guide: Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend declared. Close out dividend to retained earnings. Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2020. The following information must be clearly stated/shown: B Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2020. The following information must be clearly stated. Information on par or par values for all classes of shares which must be shown separately. The number of shares authorized and issued where necessary. The subtotal for the total paid-in capital. Retained earnings Total stockholders’ equity.

Corporation Accounting The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 60% shares of class A common stock. Stock has par value of 48 per share and was issued at $ 105 per share 2. Issued 60% shares of no-par class B stock at 98 3. Issued 20% shares of preferred stock at par value at $168 4. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000.000 and Motor Truck with an appraised value of $10,000.000. 5. Earned Net income $1,450,000.00. Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders A. Using the info above and as a guide: Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend declared. Close out dividend to retained earnings. Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2020. The following information must be clearly stated/shown: B Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2020. The following information must be clearly stated. Information on par or par values for all classes of shares which must be shown separately. The number of shares authorized and issued where necessary. The subtotal for the total paid-in capital. Retained earnings Total stockholders’ equity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Corporation Accounting

The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information.

Issued 60% shares of class A common stock. Stock has par value of 48 per share and was issued at $ 105 per share

2. Issued 60% shares of no-par class B stock at 98

3. Issued 20% shares of preferred stock at par value at $168

4. Exchanged 40% shares of class A common stock for Office Furniture and Equipment with an appraised value of $4,000.000 and Motor Truck with an appraised value of $10,000.000.

5. Earned Net income $1,450,000.00.

Declared interim dividends for preferred shareholders as well as $.80 per share to common stockholders

Using the info above and as a guide:

Prepare the journal entries with narrations to record the following:
The issuances of stock.
Close out net income to retained earnings.
Dividend declared.
Close out dividend to retained earnings. Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2020.

The following information must be clearly stated/shown:

Prepare the company’s Stockholders equity section of the balance sheet at December 31, 2020. The following information must be clearly stated.

Information on par or par values for all classes of shares which must be shown separately.
The number of shares authorized and issued where necessary.
The subtotal for the total paid-in capital.
Retained earnings
Total stockholders’ equity.

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