Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $784,000 cash and issued 28,000 shares of common stock. b. Issued 19,000 shares of preferred stock at $38 per share; collected in cash. Net income for the year was $58,000; cash dividends declared and paid at year-end were $12,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. Contributed Capital: SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Total Contributed Capital Total Stockholders' Equity

Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $784,000 cash and issued 28,000 shares of common stock. b. Issued 19,000 shares of preferred stock at $38 per share; collected in cash. Net income for the year was $58,000; cash dividends declared and paid at year-end were $12,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. Contributed Capital: SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Total Contributed Capital Total Stockholders' Equity

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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Early in the year Bill Barnes and several friends organized a corporation called Barnes Communi-cations, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preferred stock and 400,000 shares of $2 par value common stock. The following trans-actions (among others) occurred during the year: Jan. 6 Issued for cash 20,000 shares of common stock at $14 per share. The shares wereissued to Barnes and 10 other investors. Jan. 7 Issued an additional 500 shares of common stock to Barnes in exchange for his ser-vices in organizing the corporation. The stockholders agreed that these services were worth $7,000.Jan. 12 Issued 2,500 shares of preferred stock for cash of $250,000.June 4 Acquired land as a building site in exchange for 15,000 shares of common stock. Inview of the appraised value of the land and the progress of the company, the directorsagreed that the common stock was to be valued for purposes of this transaction at$15 per share.Nov. 15…
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Orlando Corporation incorporated on January 2 of the current year. During the year, Orlando had the following transactions: • Issued 20,000 shares of common stock at $25 per share. The par value per share is $1. • Purchased 1,000 shares of treasury stock at $27 per share. • No dividends were declared during the year. • The net income of $400,000. What is the total amount of stockholders' equity as of December 31 of the current year? A. $500,000 B. $900,000 C. $527,000 O D. $873,000
Quick Fix-It Corporation was organized at the beginning of this year to operate several car repair businesses in a large metropolitan area. The charter issued by the state authorized the following stock: Common stock, $20 par value, 98,100 shares authorized Preferred stock, $47 par value, 8 percent, 60,500 shares authorized During January and February of this year, the following stock transactions were completed: a. Sold 78,700 shares of common stock at $40 cash per share. b. Sold 20,000 shares of preferred stock at $77 cash per share. c. Repurchased 4,900 shares of common stock for $24 cash per share. Required: Net income for the year was $90,600; cash dividends declared and paid at year-end were $30,900. Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: QUICK FIX-IT CORPORATION Balance Sheet (Partial) At December 31
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Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200o,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: led a. Collected $576,000 cash and issued 24,000 shares of common stock. b. Issued 17,000 shares of preferred stock at $34 per share; collected in cash. Net income for the year was $54,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: 24 195,000 O Common Stock 29,000 Preferred Stock Additional Paid-In Capital, Common Stock 812,000 Additional Paid-In Capital, Preferred Stock 565,500 Total Contributed Capital 1,601,500 Retained Earnings…
Concord Corporation had the following transactions during the current period. Mar. 2 Issued 3,600 shares of $5 par value common stock to attorneys in payment of a bill for $21,600 for services performed in helping the company to incorporate. June 12 Issued 70,000 shares of $5 par value common stock for cash of $437,500. July 11 Issued 1,500 shares of $100 par value preferred stock for cash at $107 per share. Purchased 1,800 shares of treasury stock for $72,000. Nov. 28 Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically inc when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" fo. account titles and enter O for the amounts.)
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