Pronghorn Corporation is authorized to issue 21,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances. Preferred Stock (10,000 shares) Paid-in Capital in Excess of Par-Preferred Stock Common Stock (66,000 shares) Paid-in Capital in Excess of Par-Common Stock Retained Earnings During 2022, the following transactions occurred. Mar Feb. 1 Issued 2,200 shares of preferred stock for land having a fair value of $122,000 Issued 1,000 shares of preferred stock for cash at $70 per share. Issued 16,500 shares of common stock for cash at $8 per share. Issued 500 shares of preferred stock for a patent. The asking price of the patent was $30,500. Market price for the preferred stock was $69 and the fair value for the patent was indeterminable. Issued 7.500 shares of common stock for cash at $8.50 per share. Net income for the year was $261,000. No dividends were declared. 1 July 1 Sept. 1 Dec. 1 $500,000 71,000 330,000 750,000 Dec. 31 250,000
Pronghorn Corporation is authorized to issue 21,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances. Preferred Stock (10,000 shares) Paid-in Capital in Excess of Par-Preferred Stock Common Stock (66,000 shares) Paid-in Capital in Excess of Par-Common Stock Retained Earnings During 2022, the following transactions occurred. Mar Feb. 1 Issued 2,200 shares of preferred stock for land having a fair value of $122,000 Issued 1,000 shares of preferred stock for cash at $70 per share. Issued 16,500 shares of common stock for cash at $8 per share. Issued 500 shares of preferred stock for a patent. The asking price of the patent was $30,500. Market price for the preferred stock was $69 and the fair value for the patent was indeterminable. Issued 7.500 shares of common stock for cash at $8.50 per share. Net income for the year was $261,000. No dividends were declared. 1 July 1 Sept. 1 Dec. 1 $500,000 71,000 330,000 750,000 Dec. 31 250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me with correct answer thanku
Transcribed Image Text:Pronghorn Corporation is authorized to issue 21,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value
common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances.
Preferred Stock (10,000 shares)
Paid-in Capital in Excess of Par-Preferred Stock
Common Stock (66,000 shares)
Paid-in Capital in Excess of Par-Common Stock
Retained Earnings
During 2022, the following transactions occurred.
Feb. 1
Mar
1
July 1
Sept. 1
Dec.
1
Dec. 31
$500,000
71,000
330,000
750,000
250,000
Issued 2,200 shares of preferred stock for land having a fair value of $122,000.
Issued 1,000 shares of preferred stock for cash at $70 per share.
Issued 16,500 shares of common stock for cash at $8 per share.
Issued 500 shares of preferred stock for a patent. The asking price of the patent was $30,500. Market price for the
preferred stock was $69 and the fair value for the patent was indeterminable.
Issued 7,500 shares of common stock for cash at $8.50 per share.
Net income for the year was $261,000. No dividends were declared.
Transcribed Image Text:Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Post entries in the
order of journal entries presented in the previous part.)
Preferred Stock
00000 0000 000
500,000
110,000
50,000
25,000
685,000
330.000
82,500
37,500
450,000
Common Stock
71,000
71,000
12,000
20,000
9,500
125,000
Paid-in Capital in Excess of Par-Preferred Stock
750,000
49,500
26,250
Bal.
Paid-in Capital in Excess of Par-Preferred Stock
825,750
Feb. 1
Mar. 1
250,000
Sept. 1
261.000
Dec. 31
511,000
Bal
July 1
Dec. 1
Dec. 31
Bal.
Paid-in Capital in Excess of Par-Common Stock
Bal.
Feb. 1
Mar. 1
Sept. 1
Dec. 31
Bal
July 1
Retained Earnings
Dec. 1
Dec. 31
Bal.
Dec 31
Dec. 31
Prepare a stockholders' equity section at December 31, 2022. (Enter the account name only and do not provide the descriptive
information provided in the question.)
PRONGHORN CORPORATION
Balance Sheet (Partial)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education