Fox Corporation had the following stockholders' equity amounts on January 1,: Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 shares issued and outstanding, cumulative, nonparticipating $400,000 10,000 Paid in Capital in Excess of Par - Preferred Common Stock, $10 par, 1,000,000 shares authorized, 450,000 shares issued and outstanding Paid in Capital in Excess of Par - Common Total Paid in Capital Accumulated Other Comprehensive Income 4,500,000 9.000.000 13,910,000 120,000 6.400.000 $20,430,000 Unrealized Gain on Available for Sale Securities (bonds) Retained Earnings Total Stockholders' Equity Fox completed the following chronological transactions during 2022: a. Sold 10,000 shares of common stock at $36 per share in cash. b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share. c. Collected the full subscription price on 800 shares in part "b." and issued the shares. d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them. Fox uses the cost method. Resold 2,000 shares in part "d." at $37 per share in cash f. Resold another 3,000 shares in part “d." at $34 per share in cash g. The Available for Sale Securities which were bonds decreased in value by $6,000 this e. year. Ignore any tax issues related to this increase. h. Fox declared and paid $50,000 of cash dividends during the year. i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year. Prepare the closing entries at the end of the year in summary format. NSTRUCTIONS: 1. Prepare journal entries for the above events 2. Prepare the updated stockholders' equity section of the balance sheet in good form on December 31, 2022, including the effects of the entries above.
Fox Corporation had the following stockholders' equity amounts on January 1,: Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 shares issued and outstanding, cumulative, nonparticipating $400,000 10,000 Paid in Capital in Excess of Par - Preferred Common Stock, $10 par, 1,000,000 shares authorized, 450,000 shares issued and outstanding Paid in Capital in Excess of Par - Common Total Paid in Capital Accumulated Other Comprehensive Income 4,500,000 9.000.000 13,910,000 120,000 6.400.000 $20,430,000 Unrealized Gain on Available for Sale Securities (bonds) Retained Earnings Total Stockholders' Equity Fox completed the following chronological transactions during 2022: a. Sold 10,000 shares of common stock at $36 per share in cash. b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share. c. Collected the full subscription price on 800 shares in part "b." and issued the shares. d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them. Fox uses the cost method. Resold 2,000 shares in part "d." at $37 per share in cash f. Resold another 3,000 shares in part “d." at $34 per share in cash g. The Available for Sale Securities which were bonds decreased in value by $6,000 this e. year. Ignore any tax issues related to this increase. h. Fox declared and paid $50,000 of cash dividends during the year. i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year. Prepare the closing entries at the end of the year in summary format. NSTRUCTIONS: 1. Prepare journal entries for the above events 2. Prepare the updated stockholders' equity section of the balance sheet in good form on December 31, 2022, including the effects of the entries above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fox Corporation had the following stockholders' equity amounts on January 1, 2022:
Preferred Stock, 5%, $40 par, 30,000 shares authorized,
10,000 shares issued and outstanding, cumulative, nonparticipating
$400,000
10,000
Paid in Capital in Excess of Par – Preferred
Common Stock, $10 par, 1,000,000 shares authorized,
450,000 shares issued and outstanding
Paid in Capital in Excess of Par- Common
Total Paid in Capital
Accumulated Other Comprehensive Income
4,500,000
9.000.000
13,910,000
120,000
6.400.000
$20,430,000
Unrealized Gain on Available for Sale Securities (bonds)
Retained Earnings
Total Stockholders' Equity
Fox completed the following chronological transactions during 2022:
a. Sold 10,000 shares of common stock at $36 per share in cash.
b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share.
c. Collected the full subscription price on 800 shares in part "b." and issued the shares.
d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them.
Fox uses the cost method,
e. Resold 2,000 shares in part "d." at $37 per share in cash
f. Resold another 3,000 shares in part “d." at $34 per share in cash
g. The Available for Sale Securities which were bonds decreased in value by $6,000 this
year. Ignore any tax issues related to this increase.
h. Fox declared and paid $50,000 of cash dividends during the year.
i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year.
Prepare the closing entries at the end of the year in summary format.
INSTRUCTIONS:
1. Prepare journal entries for the above events
2. Prepare the updated stockholders' equity section of the balance sheet in good form on
December 31, 2022, including the effects of the entries above.
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