P13.3A LO 1, 2, 3) Financial Statement The stockholders' equity accounts of Castle Corporation on January 1, 2020, were as follows Journalize and post transactions, and prepare stockholders' equity section GLS Preferred Stock (8%, $50 par, 10,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value Common Stock1,450,000 Retained Earnings Treasury Stock (10,000 common shares) $400,000 100,000 1,816,000 50,000 During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity Feb.1 Issued 25,000 shares of common stock for $120,000 Apr. 14 Sold 6,000 shares of treasury stock-common for $33,000 Sept. 3 lssued 5,000 shares of common stock for a patent valued at $35,000 Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000 Dec. 31 Determined that net income for the year was $452,000 No dividends were declared during the year. Instructions a. Journalize the transactions and the closing entry for net income b. Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J5 for the posting reference.) c. Prepare a stockholders' equity section at December 31, 2017 Total stockholders' equity $5,350,000
P13.3A LO 1, 2, 3) Financial Statement The stockholders' equity accounts of Castle Corporation on January 1, 2020, were as follows Journalize and post transactions, and prepare stockholders' equity section GLS Preferred Stock (8%, $50 par, 10,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000 Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value Common Stock1,450,000 Retained Earnings Treasury Stock (10,000 common shares) $400,000 100,000 1,816,000 50,000 During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity Feb.1 Issued 25,000 shares of common stock for $120,000 Apr. 14 Sold 6,000 shares of treasury stock-common for $33,000 Sept. 3 lssued 5,000 shares of common stock for a patent valued at $35,000 Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000 Dec. 31 Determined that net income for the year was $452,000 No dividends were declared during the year. Instructions a. Journalize the transactions and the closing entry for net income b. Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J5 for the posting reference.) c. Prepare a stockholders' equity section at December 31, 2017 Total stockholders' equity $5,350,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P13.3A LO 1, 2, 3) Financial Statement
The stockholders' equity accounts of Castle Corporation on January 1, 2020, were as follows
Journalize and post transactions, and prepare stockholders' equity section
GLS
Preferred Stock (8%, $50 par, 10,000 shares authorized)
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par-Preferred Stock
Paid-in Capital in Excess of Stated Value Common Stock1,450,000
Retained Earnings
Treasury Stock (10,000 common shares)
$400,000
100,000
1,816,000
50,000
During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity
Feb.1 Issued 25,000 shares of common stock for $120,000
Apr. 14 Sold 6,000 shares of treasury stock-common for $33,000
Sept. 3 lssued 5,000 shares of common stock for a patent valued at $35,000
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000
Dec. 31 Determined that net income for the year was $452,000
No dividends were declared during the year.
Instructions
a. Journalize the transactions and the closing entry for net income
b. Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J5 for the posting reference.)
c. Prepare a stockholders' equity section at December 31, 2017
Total stockholders' equity $5,350,000
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