On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000shares of common stock in exchange for $150,000 cash. No other shares were issued during2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporation’smajor stockholder sold 300 shares to another stockholder for $50,000. The corporationreported net income of $37,500 for 2019.Required:Prepare the stockholders’ equity section of Mulcahy’s balance sheet at December 31, 2019.
On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000shares of common stock in exchange for $150,000 cash. No other shares were issued during2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporation’smajor stockholder sold 300 shares to another stockholder for $50,000. The corporationreported net income of $37,500 for 2019.Required:Prepare the stockholders’ equity section of Mulcahy’s balance sheet at December 31, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $150,000 cash. No other shares were issued during 2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporation’s major stockholder sold 300 shares to another stockholder for $50,000. The corporation reported net income of $37,500 for 2019. Required: Prepare the |
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