Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and 125,000 shares of TK.5 par value common stock. On January 1,2014 ,the ledger contained the following stockholders equity balances Preferred stock(10,000 shares) TK.500,000 75,000 350,000 700,000 Paid in capital in excess of par-Preferred stock Common stock(70,000 shares) Paid in capital in excess of par-Common stock Retained earnings During 2014 ,the following transactions occurred Feb 1 Issued 2,000 shares of preferred stock for land having a fair value of TK. 120,000 300,000 Issued 1,000 shares of preferred stock for cash at TK.65 per share. Mar 1 July 1 Issued 16,000 shares of common stock for cash at TK.7 per share. Sept. 1 Issued 400 shares of preferred stock for a patent.The asking price of the patent was TK.30,000.Market price for the preferred stock was TK. 70 and the fair value for the patent was Indeterminable. Dec. 1 Issued 8,000 shares of common stock for cash at TK.7.50 per share. Dec 31 Net income for the year was TK. 260,000.No dividends were declared. c) Prepare a stockholder equity section at December 31,2014.
Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock and 125,000 shares of TK.5 par value common stock. On January 1,2014 ,the ledger contained the following stockholders equity balances Preferred stock(10,000 shares) TK.500,000 75,000 350,000 700,000 Paid in capital in excess of par-Preferred stock Common stock(70,000 shares) Paid in capital in excess of par-Common stock Retained earnings During 2014 ,the following transactions occurred Feb 1 Issued 2,000 shares of preferred stock for land having a fair value of TK. 120,000 300,000 Issued 1,000 shares of preferred stock for cash at TK.65 per share. Mar 1 July 1 Issued 16,000 shares of common stock for cash at TK.7 per share. Sept. 1 Issued 400 shares of preferred stock for a patent.The asking price of the patent was TK.30,000.Market price for the preferred stock was TK. 70 and the fair value for the patent was Indeterminable. Dec. 1 Issued 8,000 shares of common stock for cash at TK.7.50 per share. Dec 31 Net income for the year was TK. 260,000.No dividends were declared. c) Prepare a stockholder equity section at December 31,2014.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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c) Prepare a
Transcribed Image Text:Peck Corporation is authorized to issue 20,000 shares of TK.50 par value,10% preferred stock
and 125,000 shares of TK.5 par value common stock. On January 1,2014 ,the ledger contained
the following stockholders equity balances
Preferred stock(10,000 shares)
Paid in capital in excess of par-Preferred stock
Common stock(70,000 shares)
Paid in capital in excess of par-Common stock
Retained earnings
During 2014 ,the following transactions occurred
Feb 1 Issued 2,000 shares of preferred stock for land having a fair value of TK. 120,000
Mar 1
TK.500,000
75,000
350,000
700,000
300,000
Issued 1,000 shares of preferred stock for cash at TK.65 per share.
July 1 Issued 16,000 shares of common stock for cash at TK.7 per share.
Sept. 1 Issued 400 shares of preferred stock for a patent. The asking price of the patent was
TK.30,000.Market price for the preferred stock was TK.70 and the fair value for the patent was
Indeterminable.
Dec. 1 Issued 8,000 shares of common stock for cash at TK.7.50 per share .
Dec .31 Net income for the year was TK.260,000.No dividends were declared.
c) Prepare a stockholder equity section at December 31,2014.
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