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Q1. The MM CORPORATION was organized the State of Wisconsin's. The charter authorized the Issuance of 1,000,000 shares of S 2 PAR VALUE COMMON STOCK and additional 25000 shares of 4%, 20 par value cumulative convertible preferred stock that is callable $22 per share. Transactions that relate to the stock of the company are shown below: Feb 2 Issued 1,00,000 shares of common stock for S 250,000. Mar 5 Issued 60,000 shares of common stock JM CORPOARATION in exchange for a Building and land, which had an appraised value of $ 100,000 and $ 25000 , respectively. July 15 Issued 25000 shares of preferred stock for $500,000. Dec 31 The Company reported earnings of S 40,000 for 2018 and the board declared dividends of $ 20000. Dividends include preferred stock cash dividend for one- half year. Prepare the journal entries necessary to record a) these stock-related transactions. b) Prepare the stockholder's equity section of this corporation balance sheet as of december31.

Q1. The MM CORPORATION was organized the State of Wisconsin's. The charter authorized the Issuance of 1,000,000 shares of S 2 PAR VALUE COMMON STOCK and additional 25000 shares of 4%, 20 par value cumulative convertible preferred stock that is callable $22 per share. Transactions that relate to the stock of the company are shown below: Feb 2 Issued 1,00,000 shares of common stock for S 250,000. Mar 5 Issued 60,000 shares of common stock JM CORPOARATION in exchange for a Building and land, which had an appraised value of $ 100,000 and $ 25000 , respectively. July 15 Issued 25000 shares of preferred stock for $500,000. Dec 31 The Company reported earnings of S 40,000 for 2018 and the board declared dividends of $ 20000. Dividends include preferred stock cash dividend for one- half year. Prepare the journal entries necessary to record a) these stock-related transactions. b) Prepare the stockholder's equity section of this corporation balance sheet as of december31.

FINANCIAL ACCOUNTING
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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Q 1. The MM CORPORATION was organized the State of Wisconsin's. The charter authorized the Issuance of 1,000,000 shares of $ 2 PAR VALUE COMMON STOCK and additional 25000 shares of 4%, 20 par value cumulative convertible preferred stock that is callable $22 per share. Transactions that relate to the stock of the company are shown below: Feb 2 Issued 1,00,000 shares of common stock for S 250,000. Mar 5 Issued 60,000 shares of common stock JM CORPOARATION in exchange for a Building and land, which had an appraised value of $ 100,000 and $ 25000 , respectively. July 15 Issued 25000 shares of preferred stock for $500,000. Dec 31 The Company reported earnings of S 40,000 for 2018 and the board declared dividends of $ 20000. Dividends include preferred stock cash dividend for one- half year. Prepare the journal entries necessary to record a) these stock-related transactions. Prepare the stockholder's equity section of this corporation balance sheet as of december31. b)
Transcribed Image Text:Q 1. The MM CORPORATION was organized the State of Wisconsin's. The charter authorized the Issuance of 1,000,000 shares of $ 2 PAR VALUE COMMON STOCK and additional 25000 shares of 4%, 20 par value cumulative convertible preferred stock that is callable $22 per share. Transactions that relate to the stock of the company are shown below: Feb 2 Issued 1,00,000 shares of common stock for S 250,000. Mar 5 Issued 60,000 shares of common stock JM CORPOARATION in exchange for a Building and land, which had an appraised value of $ 100,000 and $ 25000 , respectively. July 15 Issued 25000 shares of preferred stock for $500,000. Dec 31 The Company reported earnings of S 40,000 for 2018 and the board declared dividends of $ 20000. Dividends include preferred stock cash dividend for one- half year. Prepare the journal entries necessary to record a) these stock-related transactions. Prepare the stockholder's equity section of this corporation balance sheet as of december31. b)
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