A) How much stockholders equity does diamondback have at the beginning of the current fiscal year?B) Use the accounting equation and your answer to part (a) to show how you would calculate Diamondback's assets and liabilities at the beginning of the current fiscal year. C) Summarize your findings. ares ofvriter, and (c) that aand the land on which it is located, valued at $800,000, be acquirin accordance with preliminary negotiations by the issuance of 300,000 shares ofmon stock valued at $16.50 per share. The plan was approved by the stockholders andwriter, and (c) that a buildingand the land on which it is located, valued at $800,000, be acquiredaccomplished by the following transactions:Oct. 9. Borrowed $1,500,000 from St. Peter City Bank, giving a 4% mortgage note.17. Issued 20,000 shares of preferred stock, receiving $126 per share in cash.28. Issued 300,000 shares of common stock in exchange for land and a building,according to the plan.instructionsJournalize the entries to record the October transactions.nommoPR 13-3B Selected stock transactionsОBJ. 3, 4,6Diamondback Welding & Fabrication Corporation sells and services pipe welding equip-ment in Illinois. The following selected accounts appear in the ledger of DiamondbackWelding & Fabrication Corporation at the beginning of the current fiscal year:ds,Preferred 2% Stock, $80 par (100,000 shares authorized,. $ 4,800,00060,000 shares issued)...Paid-In Capital in Excess of Par-Preferred Stock .........210,000Common Stock, $9 par (3,000,000 shares authorized,1,750,000 shares issued)15,750,0001,400,000Paid-In Capital in Excess of Par-Common Stock.Retained Earnings.52,840,000 Chapter 13 Corporations: Organization, Stock Transactions, and Dividends669During the year, the corporation completed a number of transactions affecting theooblor 01 o1 o stockholders' equity. They are summarized as follows:a. Purchased 87,500 shares of treasury common for $8pershare.b. Sold 55,000 shares of treasury common for $11 per share.c. Issued 20,000 shares of preferred 2% stock at $84.d. Issued 400,000 shares of common stock at $13, receiving cash.e. Sold 18,000 shares of treasury common for $7.50 per share.f Declared cash dividends of $1.60 per share on preferred stock and $0.05 per shareon common stock.g. Paid the cash dividends.Tt orh is

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A) How much stockholders equity does diamondback have at the beginning of the current fiscal year?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 32P

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