2. The company is desirous of comparing serval 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 5000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share • Issued 2000 shares of preferred stock at par value as payment in exchange for legal services. • Exchanged 100,000 shares of common stock for land with an appraised value of $250,000 and a building with an appraised value of $450,000 • Earned Net income $ 500,000.
2. The company is desirous of comparing serval 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
• Issued 5000 shares of common stock. Stock has par value of $0.01 per share and was issued at $30 per share
• Issued 2000 shares of preferred stock at par value as payment in exchange for legal services.
• Exchanged 100,000 shares of common stock for land with an appraised value of $250,000 and a building with an appraised value of $450,000
• Earned Net income $ 500,000.
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