The company is desirous of comparing several financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your surname name initial. Issued ________shares of common stock. Stock has par value of ___ per share and was issued at $____ per share. (please refer to table below) Surname Initial # of shares issued Par value Issue Price C 15,000 $0.10 $30.00 Issued _______ shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below) Surname Initial # of shares issued C 5,000 Exchanged ______ shares of common stock for land with an appraised value of $______ and a building with an appraised value of $_____. (please refer to table below) Surname Initial # of shares issued Value of land Value of Building C 120,000 $300,000.00 $500,000.00 Earned Net income $______. (please refer to table below) Surname Initial Net Income C $ 600,000.00 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend paid. Close out dividend to retained earnings. Prepare Osbourne Corporation Stockholders equity section of the balance sheet at December 31, 2021. (Hint!!!!!!!) The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary. the sub total for the total paid in capital. Retained earnings. total stockholders’ equity.

The company is desirous of comparing several financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information which is grouped according to your surname name initial. Issued ______shares of common stock. Stock has par value of _ per share and was issued at $ per share. (please refer to table below) Surname Initial # of shares issued Par value Issue Price C 15,000 $0.10 $30.00 Issued _ shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below) Surname Initial # of shares issued C 5,000 Exchanged shares of common stock for land with an appraised value of $ and a building with an appraised value of $_. (please refer to table below) Surname Initial # of shares issued Value of land Value of Building C 120,000 $300,000.00 $500,000.00 Earned Net income $____. (please refer to table below) Surname Initial Net Income C $ 600,000.00 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net income to retained earnings. Dividend paid. Close out dividend to retained earnings. Prepare Osbourne Corporation Stockholders equity section of the balance sheet at December 31, 2021. (Hint!!!!!!!) The following information must be clearly stated/shown: information on par values, the number of shares authorized and issued where necessary. the sub total for the total paid in capital. Retained earnings. 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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Issued ________shares of common stock. Stock has par value of ___ per share and was issued at $____ per share. (please refer to table below)

Surname Initial	# of shares issued	Par value	Issue Price
C	15,000	$0.10	$30.00

Issued _______ shares of preferred stock at par value as payment in exchange for legal services. (please refer to table below)

Surname Initial	# of shares issued
C	5,000

Exchanged ______ shares of common stock for land with an appraised value of $______ and a building with an appraised value of $_____. (please refer to table below)

Surname Initial	# of shares issued	Value of land	Value of Building
C	120,000	$300,000.00	$500,000.00

Earned Net income $______. (please refer to table below)

Surname Initial	Net Income
C	$ 600,000.00

Paid dividends to preferred shareholders as well as $2 per share to common stockholders.

Using the info above and as a guide:

Prepare the journal entries with narrations to record the following:

The issuances of stock.
Close out net income to retained earnings.
Dividend paid.
Close out dividend to retained earnings.

Prepare Osbourne Corporation Stockholders equity section of the balance sheet at December 31, 2021. (Hint!!!!!!!) The following information must be clearly stated/shown:
- information on par values,
- the number of shares authorized and issued where necessary.
- the sub total for the total paid in capital.
- Retained earnings.
- total stockholders’ equity.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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