Problem 4: On January 1, 2020, Leyland Inc. had these stockholder equity balances. Common Stock, $1 par (1,000,000 shares authorized; 500,000 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earmings During 2020, the following transactions and events occurred. $ 500,000 $1,000,000 $ 600,000 1. Issued 50,000 shares of $1 par common stock for $125,000. 2. Issued 40,000 common shares for cash at S4 per share. 3. Purchased 15,000 shares of common stock for the treasury at $4 per share. 4. Declared and paid a cash dividend of $160,000. 5. Reported net income of $450,000. Instructions Prepare the stockholders' equity section of the balance sheet at December 31, 2020.
Problem 4: On January 1, 2020, Leyland Inc. had these stockholder equity balances. Common Stock, $1 par (1,000,000 shares authorized; 500,000 shares issued and outstanding) Paid-in Capital in Excess of Par Value Retained Earmings During 2020, the following transactions and events occurred. $ 500,000 $1,000,000 $ 600,000 1. Issued 50,000 shares of $1 par common stock for $125,000. 2. Issued 40,000 common shares for cash at S4 per share. 3. Purchased 15,000 shares of common stock for the treasury at $4 per share. 4. Declared and paid a cash dividend of $160,000. 5. Reported net income of $450,000. Instructions Prepare the stockholders' equity section of the balance sheet at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) Prepare journal entries for the transactions listed above and adjusting entries.
(b) Prepare the income statement
Problem 4:
On January 1, 2020, Leyland Inc. had these stockholder equity balances.
Common Stock, $1 par (1,000,000 shares authorized;
500,000 shares issued and outstanding)
$ 500,000
Paid-in Capital in Excess of Par Value
Retained Earnings
$ 1,000,000
$ 600,000
During 2020, the following transactions and events occurred.
1. Issued 50,000 shares of $1 par common stock for $125,000.
2. Issued 40,000 common shares for cash at $4 per share.
3. Purchased 15,000 shares of common stock for the treasury at $4 per share.
4. Declared and paid a cash dividend of $160,000.
5. Reported net income of $450,000.
Instructions
Prepare the stockholders' equity section of the balance sheet at December 31, 2020.
9. Mystery bought $35,100 of supplies on account.
10. An account receivable of $1,300 which originated in 2019 is written off as uncollectible.
11. Mystery reacquired 400 shares of its common stock on June 1, 2020, for $38 per share.
12. Mystery performed services for $280,000 on account.
13. On December 31, 2020, International declared the annual preferred stock dividend and a $1.20 per
share dividend on the outstanding common stock, all payable on January 15, 2021.
Adjustment data:
5. A count of supplies indicates that $5,900 of supplies remain unused at year-end.
6. The allowance for doubtful accounts should have a balance of $3,500 at year end.
7. Depreciation is recorded on the Machinery on a straight-line basis based on a 20-year life and a
salvage value of $20,000.
8. The income tax rate is 40%.
Instructions
(c) Prepare journal entries for the transactions listed above and adjusting entries.
(d) Prepare the income statement
FINAL TEST – FINANCIAL ACCOUNTING
i0non hoak tost Tinas 00)
Page 6 of 9
2236 words
E English (United States)
+ 91%
VIE
12:12 AM
TL
12/30/2021](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c95c87e-781b-4471-91c0-2843d611ea3d%2Ffdd2a6f7-5bce-4d14-b999-af76c163ff8f%2Fe9jl918_processed.png&w=3840&q=75)
Transcribed Image Text:Final test-SNHU19E1-đã chuyển đổi [Compatibility Mode] - Word
困
File
Home
Insert
Design
Layout
References
Mailings
Review
View
O Tell me what you want to do...
& Share
E Outline
O Ruler
E One Page
O View Side by Side
E Draft
O Gridlines
BI Multiple Pages
EBI Synchronous Scrolling
Read
Print
Web
Zoom 100%
New Arrange Split
Switch
Мacros
Mode Layout Layout
O Navigation Pane
E Page Width
BE Reset Window Position
Windows -
Window
All
Views
Show
Zoom
Window
Мacros
(a) Prepare journal entries for the transactions listed above and adjusting entries.
(b) Prepare the income statement
Problem 4:
On January 1, 2020, Leyland Inc. had these stockholder equity balances.
Common Stock, $1 par (1,000,000 shares authorized;
500,000 shares issued and outstanding)
$ 500,000
Paid-in Capital in Excess of Par Value
Retained Earnings
$ 1,000,000
$ 600,000
During 2020, the following transactions and events occurred.
1. Issued 50,000 shares of $1 par common stock for $125,000.
2. Issued 40,000 common shares for cash at $4 per share.
3. Purchased 15,000 shares of common stock for the treasury at $4 per share.
4. Declared and paid a cash dividend of $160,000.
5. Reported net income of $450,000.
Instructions
Prepare the stockholders' equity section of the balance sheet at December 31, 2020.
9. Mystery bought $35,100 of supplies on account.
10. An account receivable of $1,300 which originated in 2019 is written off as uncollectible.
11. Mystery reacquired 400 shares of its common stock on June 1, 2020, for $38 per share.
12. Mystery performed services for $280,000 on account.
13. On December 31, 2020, International declared the annual preferred stock dividend and a $1.20 per
share dividend on the outstanding common stock, all payable on January 15, 2021.
Adjustment data:
5. A count of supplies indicates that $5,900 of supplies remain unused at year-end.
6. The allowance for doubtful accounts should have a balance of $3,500 at year end.
7. Depreciation is recorded on the Machinery on a straight-line basis based on a 20-year life and a
salvage value of $20,000.
8. The income tax rate is 40%.
Instructions
(c) Prepare journal entries for the transactions listed above and adjusting entries.
(d) Prepare the income statement
FINAL TEST – FINANCIAL ACCOUNTING
i0non hoak tost Tinas 00)
Page 6 of 9
2236 words
E English (United States)
+ 91%
VIE
12:12 AM
TL
12/30/2021
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