Q3: Lincoln-Priest Inc., reported the following stockholder’s equity on its balance sheet at June 30th, 2020. Lincoln-Priest Inc Stockholder’s equity June 30th, 2020. Paid in Capital: Preferred stock, 7%, Rs. 40 par, 110, 000 shares authorized, none issued Rs. 0 Common stock, par value Rs 1 per share, 520,000 shares authorized, 61,000 issued 61,000 Share premium 41,000 Retained earnings 29,000 During 2020 the company completed the following transactions. Journalize each transaction. 1. Issued for cash 1300 shares of preferred stock at par value. 2. Issued for cash 2400 shares of common stock at Rs 5 per share. 3. Net Income for the year was Rs 74, 000 and the company declared Rs. 60, 000 dividends at June 30th, 2020. Requirement; Prepare the Statement showing the variation in stock holder’s equity section at June 30th, 2020.
Q3: Lincoln-Priest Inc., reported the following
Lincoln-Priest Inc
Stockholder’s equity
June 30th, 2020.
Paid in Capital:
Common stock, par value Rs 1 per share, 520,000 shares authorized,
61,000 issued 61,000
Share premium 41,000
During 2020 the company completed the following transactions. Journalize each transaction.
1. Issued for cash 1300 shares of preferred stock at par value.
2. Issued for cash 2400 shares of common stock at Rs 5 per share.
3. Net Income for the year was Rs 74, 000 and the company declared Rs. 60, 000 dividends at June 30th, 2020.
Requirement; Prepare the Statement showing the variation in stock holder’s equity section at June 30th, 2020.
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