On January 5, 2025, Swifty Corporation received a charter granting the right to issue 5.500 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 (a) Issued 18,400 shares of common stock at $15 per share. Issued to Sanchez Corp. 3,800 shares of preferred stock for the following assets: equipment with a fair value of $52,700; a factory building with a fair value of $165,000; and land with an appraised value of $255,000. Purchased 1,800 shares of common stock at $16 per share. (Use cost method) Sold the 1,800 treasury shares at $14 per share. Declared a $0.35 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $186,500 net income. Record the journal entries for the transactions listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit DOOD Credi
On January 5, 2025, Swifty Corporation received a charter granting the right to issue 5.500 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 (a) Issued 18,400 shares of common stock at $15 per share. Issued to Sanchez Corp. 3,800 shares of preferred stock for the following assets: equipment with a fair value of $52,700; a factory building with a fair value of $165,000; and land with an appraised value of $255,000. Purchased 1,800 shares of common stock at $16 per share. (Use cost method) Sold the 1,800 treasury shares at $14 per share. Declared a $0.35 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $186,500 net income. Record the journal entries for the transactions listed above. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit DOOD Credi
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(To record declaration of dividend on shares)
(To closed income summary account)
Transcribed Image Text:On January 5, 2025, Swifty Corporation received a charter granting the right to issue 5,500 shares of $100 par value, 7% cumulative
and nonparticipating preferred stock, and 49,000 shares of $10 par value common stock. It then completed these transactions.
Jan. 11
Feb. 1
July 29
Aug. 10
Dec. 31
Dec. 31
(a)
Issued 18,400 shares of common stock at $15 per share.
Issued to Sanchez Corp. 3,800 shares of preferred stock for the following assets: equipment with a fair value of
$52,700; a factory building with a fair value of $165,000; and land with an appraised value of $255,000.
Purchased 1,800 shares of common stock at $16 per share. (Use cost method.)
Sold the 1,800 treasury shares at $14 per share.
Declared a $0.35 per share cash dividend on the common stock and declared the preferred dividend.
Closed the Income Summary account. There was a $186,500 net income.
Record the journal entries for the transactions listed above. (List all debit entries before credit entries. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter o for the amounts. Record entries in the order displayed in the problem statement.)
Account Titles and Explanation
Date
Debit
Credi
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