Kelly's Corp. authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: Kelly's Corp purchased a piece of land from the original owner. In payment for the land, Kelly's corp issues 300,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,200,000 The company sold 120,000 shares of common stock with $1 par value. Issued 25,500 shares of $20 par value preferred stock. Shares were issued at par. Earned net income of $764,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock 1a. Do the Journal entries and closing entries for the above transactions 1b. Do the owner’s equity section of the balance sheet only!
Kelly's Corp. authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: Kelly's Corp purchased a piece of land from the original owner. In payment for the land, Kelly's corp issues 300,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,200,000 The company sold 120,000 shares of common stock with $1 par value. Issued 25,500 shares of $20 par value preferred stock. Shares were issued at par. Earned net income of $764,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock 1a. Do the Journal entries and closing entries for the above transactions 1b. Do the owner’s equity section of the balance sheet only!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kelly's Corp. authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration:
- Kelly's Corp purchased a piece of land from the original owner. In payment for the land, Kelly's corp issues 300,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,200,000
- The company sold 120,000 shares of common stock with $1 par value.
- Issued 25,500 shares of $20 par value preferred stock. Shares were issued at par.
- Earned net income of $764,000
- Dividend declared and paid - $0.15 per share on common stock
- Dividend declared and paid - $5 per
share on preferred stock
1a. Do the Journal entries and closing entries for the above transactions
1b. Do the owner’s equity section of the
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