On January 5, 2020, Coronado Corporation received a charter granting the right to issue 5,400 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 46,800 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Issued 19,700 shares of common stock at $16 per share. Issued to Sanchez Corp. 3,800 shares preferred stock for the following assets: equipment with a fair value of $46,000; a factory building with a fair value of $160,000; and land with an appraised value of $247,000. Purchased 1,700 shares of common stock at $16 per share. (Use cost method.) Sold the 1,700 treasury shares at $15 per share. Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $168,200 net income.
On January 5, 2020, Coronado Corporation received a charter granting the right to issue 5,400 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 46,800 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Issued 19,700 shares of common stock at $16 per share. Issued to Sanchez Corp. 3,800 shares preferred stock for the following assets: equipment with a fair value of $46,000; a factory building with a fair value of $160,000; and land with an appraised value of $247,000. Purchased 1,700 shares of common stock at $16 per share. (Use cost method.) Sold the 1,700 treasury shares at $15 per share. Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $168,200 net income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On January 5, 2020, Coronado Corporation received a charter granting the right to issue 5,400 shares of $100 par value, 7%
cumulative and nonparticipating preferred stock, and 46,800 shares of $10 par value common stock. It then completed these
transactions.
Jan. 11
Feb. 1
July 29
Aug. 10
Dec. 31
Dec. 31
Issued 19,700 shares of common stock at $16 per share.
Issued to Sanchez Corp. 3,800 shares of preferred stock for the following assets: equipment with a fair value of
$46,000; a factory building with a fair value of $160,000; and land with an appraised value of $247,000.
Purchased 1,700 shares of common stock at $16 per share. (Use cost method.)
Sold the 1,700 treasury shares at $15 per share.
Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend.
Closed the Income Summary account. There was a $168,200 net income.
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