Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity accounts of Scott Corporation at January 1 follow: Common stock, $5 par value, 350,000 shares authorized; 150,000 shares issued and outstanding $750,000 Paid-in capital in excess of par value (common stock) 600,000 Retained earnings 346,000 During the year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $13 cash per share. 18 Purchased 4,000 shares of common stock as treasury stock at $15 cash per share. Mar. 12 Sold one-fourth of the trea
Stockholders’ Equity: Transactions and Balance Sheet Presentation The stockholders’ equity accounts of Scott Corporation at January 1 follow: Common stock, $5 par value, 350,000 shares authorized; 150,000 shares issued and outstanding $750,000 Paid-in capital in excess of par value (common stock) 600,000 Retained earnings 346,000 During the year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $13 cash per share. 18 Purchased 4,000 shares of common stock as treasury stock at $15 cash per share. Mar. 12 Sold one-fourth of the trea
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The stockholders’ equity accounts of Scott Corporation at January 1 follow:
Common stock, $5 par value, 350,000 shares authorized; | |
150,000 shares issued and outstanding | $750,000 |
Paid-in capital in excess of par value (common stock) | 600,000 |
346,000 |
During the year, the following transactions occurred:
Jan. | 5 | Issued 10,000 shares of common stock for $13 cash per share. |
18 | Purchased 4,000 shares of common stock as |
|
Mar. | 12 | Sold one-fourth of the treasury shares acquired January 18 for $18 per share. |
July | 17 | Sold 500 shares of the remaining treasury stock for $14 per share. |
Oct. | 1 | Issued 5,000 shares of eight percent, $25 par value preferred stock for $36 cash per share. |
These are the first |
||
Dec. | 31 | Closed the net income of $73,500 to the Retained Earnings account. |
Required
-
Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the
journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders’ equity accounts. - Prepare the December 31 stockholders’ equity section of the balance sheet.
- Journal Entries
- T-Accounts
- Balance Sheets
Cash | |||
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Jan.05 | Answer
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Jan.18 | Answer
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Mar.12 | Answer
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Jul.17 | Answer
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Oct.01 | Answer
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Preferred Stock | |||
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Oct.01 | Answer
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Bal. | Answer
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Common Stock | |||
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Beg. bal | 750,000 | ||
Jan.05 | Answer
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Answer
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Bal | Answer
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Answer
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Paid-in-Capital in Excess of Par Value - Preferred Stock | |||
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Oct.01 | Answer
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Bal | Answer
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Paid-in-Capital in Excess of Par Value - Common Stock | |||
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Beg. bal | 600,000 | ||
Jan.5 | Answer
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Bal | Answer
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Paid-in-Capital from Treasury Stock | |||
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Mar.12 | Answer
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Jul.17 | Answer
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Bal. | Answer
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