Sun Corporation was organized on January 1, 2013. The articles of incorporation authorized 200,000 shares of $1.00 par value, 6% cumulative preferred shares, and 60,000 shares of $0.50 par value common shares. The following transactions affecting shareholder’ equity were completed during 2013. ▪ Issued 60,000 par value common shares for $6 ▪ Issued 60,000 preferred shares at par. ▪ Issued 20,000 shares of preferred shares at par in full payment of legal services rendered in connection with organization of the company. ▪ Purchased land for a store site with an appraisal value of $30,000 and made full payment by issuing 10,000 shares of preferred shares. ▪ On December 1, 2013, the Board of Directors of Shelly Corporation declared the cash dividend on the preferred shares and cash dividend of $0.20 per share on the common shares. ▪ Revenues for the year amounted to $129,300; expenses amounted to $98,000 prepare the journal entries, closing entries and balance sheet
Sun Corporation was organized on January 1, 2013. The articles of
incorporation authorized 200,000 shares of $1.00 par value, 6% cumulative
following transactions affecting shareholder’ equity were completed during
2013.
▪ Issued 60,000 par value common shares for $6
▪ Issued 60,000 preferred shares at par.
▪ Issued 20,000 shares of preferred shares at par in full payment of legal
services rendered in connection with organization of the company.
▪ Purchased land for a store site with an appraisal value of $30,000 and
made full payment by issuing 10,000 shares of preferred shares.
▪ On December 1, 2013, the Board of Directors of Shelly Corporation
declared the cash dividend on the preferred shares and cash dividend of
$0.20 per share on the common shares.
▪ Revenues for the year amounted to $129,300; expenses amounted to
$98,000
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