Pharoah Corporation's charter authorized 2 million $11 par value common shares, and 300,000 8% cumulative and non-participatingpreferred shares, with a par value of $100 per share. The corporation made the following share transactions through December 31.2023: 340,000 common shares were issued for $4.08 million and 11,000 preferred shares were issued for machinery valued at$1,559,000. Subscriptions for 11,300 common shares have been taken, and 40% of the subscription price of $17 per share has beencollected. The shares will be issued when the subscription price is collected in full. In addition, 10,000 common shares have beenrepurchased for $16 and retired. The Retained Earnings balance is $220,000 before considering the transactions above.(a)Prepare the shareholders' equity section of the SFP in good form.PHAROAH CORPORATIONPartial Statement of Financial Position$ Total Shareholders' EquityShare CapitalPreferred SharesCommon SharesCommon Shares SubscribedTotal Common Shares issued and to be issuedTotal Share Capital<Partial Statement of Financial PositionFor the Year Ended December 31, 2023363000012430010110037544854

Owners' equity, often referred to as shareholders' equity, is the remaining stake in a company's…

Answered: Pharoah Corporation's charter…

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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On April 1, 2019, Kelly Corporation began operations and authorized 100,000 shares of $5 par value common stock. The company engaged in the following transactions:April 1 Issued 20,000 shares of common stock for $200,000.April 15 Issued 10,000 shares of common stock for $125,000.May 12 Purchased 2,500 shares of common stock for $75,000.June 30 The board of directors declared a $0.20 per share cash dividend to be paid on July 15 to shareholders of record on July 51. Prepare journal entries for the above transactions.2. Prepared the stockholders’ equity section of Kelly Corporation’s balance sheet as of June 30, 2019. Net income for the period April 1 through June 30 was $150,000.3. What effect, if any, will the cash dividend declaration on June 30 have on Kelly Corporation’s net income, retained earnings, and cash flows?
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