Matchlessly, Inc., was organized in 2017. At December 31, 2017, the company’sBalance sheet reported the following stockholders’ equity:Matchlessly, Inc.Stockholders’ EquityDecember 31,2017Paid-in CapitalPreferred stock, 7%, $40 par, 200,000 shares authorized, none issued $ 0Common stock, $1 par, 600,000 shares authorized, 61,000 shares issuedand outstanding61,000Paid-in capital in excess of par—common 41,000Total paid-in capital 102,000Retained earnings 29,000Total Stockholders’ equity $131,000Note: Total paid in capital = 61,000 + 41,000Total stockholders’ equity = 102,000 + 29,000Requirements:1. During 2018, the company completed the following selected transactions and you arerequired to journalize each transaction. Explanations are NOT required.a. Issued for cash 1,300 shares of preferred stock at par value.b. Issued for cash 2,400 shares of common stock at a price of $5 per share.c. Net Loss for the year was $79,000, and the company declared no dividends.Make the closing entry for Net Loss.2. Prepare the stockholders’ equity section of the Matchlessly Balance sheet as atDecember 31, 2018.
Matchlessly, Inc., was organized in 2017. At December 31, 2017, the company’s
Balance sheet reported the following
Matchlessly, Inc.
Stockholders’ Equity
December 31,2017
Paid-in Capital
Common stock, $1 par, 600,000 shares authorized, 61,000 shares issued
and outstanding
61,000
Paid-in capital in excess of par—common 41,000
Total paid-in capital 102,000
Total Stockholders’ equity $131,000
Note: Total paid in capital = 61,000 + 41,000
Total stockholders’ equity = 102,000 + 29,000
Requirements:
1. During 2018, the company completed the following selected transactions and you are
required to journalize each transaction. Explanations are NOT required.
a. Issued for cash 1,300 shares of preferred stock at par value.
b. Issued for cash 2,400 shares of common stock at a price of $5 per share.
c. Net Loss for the year was $79,000, and the company declared no dividends.
Make the closing entry for Net Loss.
2. Prepare the stockholders’ equity section of the Matchlessly Balance sheet as at
December 31, 2018.
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