rlich Corporation is authorized to issue 20,000,000 shares of $10 par value common stock and 1,000,000 shares of its 6% cumulative $100 par value preferred stock. During 2020, it had the following transactions: Jan. 5 Issued 15,000 shares of common stock for $80/share. Feb. 8 Issued 7,000 shares of its preferred stock in exchange for land with a fair value of $900,000 Apr. 1 Purchased 1,000 shares of its common stock (for the treasury) at $80 per share. May 9 Resold 500 shares of its common stock purchased on April 1 at $85 per share June 2 Resold 400 shares of its common stock purchased on April 1 at $60 per share. Dec. 31 Reported net income of $2,500,000 INSTRUCTIONS: Prepare the journal entries to record
Ehrlich Corporation is authorized to issue 20,000,000 shares of $10 par value common stock and 1,000,000 shares of its 6% cumulative $100 par value
Jan. 5 Issued 15,000 shares of common stock for $80/share.
Feb. 8 Issued 7,000 shares of its preferred stock in exchange for land with a fair value of $900,000
Apr. 1 Purchased 1,000 shares of its common stock (for the treasury) at $80 per share.
May 9 Resold 500 shares of its common stock purchased on April 1 at $85 per share
June 2 Resold 400 shares of its common stock purchased on April 1 at $60 per share.
Dec. 31 Reported net income of $2,500,000
INSTRUCTIONS:
- Prepare the
journal entries to record the above transactions. - Prepare Ehrlich’s
stockholders’ equity section of its balance sheet as of Dec 31, 2020. Make sure you show all proper share information.
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