Chapter 11, Problem 11.5AP

(a) (1)

To determine

Stockholders’ Equity Section: It is refers to the section of the balance sheet that shows the available balance stockholders’ equity as on reported date at the end of the financial year.

To prepare: the journal entry for the issuance of preferred stock for cash.

(2)

To determine

To prepare: the journal entry for the issuance of common stock for cash.

(3)

To determine

To prepare: the journal entry for the issuance of treasury stock for cash.

(b)

To determine

To Prepare: the stockholders’ equity section of balance sheet for Corporation L as of December 31, 2017.