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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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prepare the stockholders equity section of swifty's corporation's balance sheet as of December 31, 2025 Jan. 11 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. Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Show Transcribed Text Date 1.11 eb. 1 ly 29 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. 4 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. Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Equipment Buildings Land 3 Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock Treasury Stock Ć Cash Ć Debit 276000 52700 165000 255000 28800 Credit 184000 92000 380000 92700 28800
Transcribed Image Text:prepare the stockholders equity section of swifty's corporation's balance sheet as of December 31, 2025 Jan. 11 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. Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Show Transcribed Text Date 1.11 eb. 1 ly 29 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. 4 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. Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par - Common Stock Equipment Buildings Land 3 Preferred Stock Paid-in Capital in Excess of Par - Preferred Stock Treasury Stock Ć Cash Ć Debit 276000 52700 165000 255000 28800 Credit 184000 92000 380000 92700 28800
ug. 10 v c. 31 v c. 31 v Cash Retained Earnings Treasury Stock Common Stock Dividend Distributable Dividends Payable (To record declaration of dividend on shares) Income Summary Retained Earnings (To closed income summary account) Show Transcribed Text SWIFTY CORPORATION Stockholders' Equity $ $ 25200 3600 33040 186500 $ 28800 33040 186500
Transcribed Image Text:ug. 10 v c. 31 v c. 31 v Cash Retained Earnings Treasury Stock Common Stock Dividend Distributable Dividends Payable (To record declaration of dividend on shares) Income Summary Retained Earnings (To closed income summary account) Show Transcribed Text SWIFTY CORPORATION Stockholders' Equity $ $ 25200 3600 33040 186500 $ 28800 33040 186500
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