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 $676,000 cash and issued 26.000 shares of common stock b Issued 18,000 shares of preferred stock at $36 per share; collected in cash Net income for the year was $56.000 cash dividends declared and paid ot year-end were $10,000 Required: Prepare the stockholders' equity section of the balance sheet at December 31

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 $676,000 cash and issued 26.000 shares of common stock b Issued 18,000 shares of preferred stock at $36 per share; collected in cash Net income for the year was $56.000 cash dividends declared and paid ot year-end were $10,000 Required: Prepare the stockholders' equity section of the balance sheet at December 31

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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Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Eastport Incorporated during Year 1: 1.Issued 15,000 shares of common stock for $12 per share. 2.Issued 5,000 shares of the class A preferred stock for $51 per share. Repurchased as treasury stock 500 shares of common stock for $8 per share. Sold 100 shares of treasury stock for $14 per share. Declared a $130,000 total dividend. Paid the dividend, with appropriate amounts going to preferred stock and common stock investors. Eastport reported a $479,000 net income for the year. Required Prepare general journal entries for these transactions. What amount of dividends went to common stock shareholders & preferred stock shareholders? Prepare the stockholders’ equity section of the balance sheet…
Ava School of Learning obtained a charter at the start of the year that authorized 50,000 sharesof no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, thefollowing selected transactions occurred:a. Collected $40 cash per share from four individuals and issued 5,000 shares of common stockto each.b. Issued 6,000 shares of common stock to an outside investor at $40 cash per share.c. Issued 8,000 shares of preferred stock at $20 cash per share.Required:1. Give the journal entries indicated for each of these transactions.2. Prepare the stockholders’ equity section of the balance sheet at December 31. At the end ofthe year, the accounts reflected net income of $36,000. No dividends were declared.
B6
Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no- par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $48 cash per share from four individuals and issued 5,800 shares of common stock to each. Issued 6,800 shares of common stock to an outside investor at $48 cash per share. Issued 8,800 shares of preferred stock at $17 cash per share. Required: Prepare the journal entries indicated for each of these transactions. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $44,000. No dividends were declared.
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 $900,000 cash and issued 30,000 shares of common stock. b. Issued 20,000 shares of preferred stock at $40 per share; collected in cash. Net income for the year was $60,000; 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:
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Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: a. Collected $32 cash per share from four individuals and issued 4,200 shares of common stock to each. b. Issued 5,200 shares of common stock to an outside investor $32 cash per share. c. Issued 7,200 shares of preferred stock at $17 cash per share. Required: 1. Prepare the journal entries indicated for each of these transactions. 2. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $28,000. No dividends were declared.
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