W16-5 On January 5, 2019, PE Corporation received a charter granting the right to issue5,000 shares of P100 par value, 8% cumulative and nonparticipating preferred stock, and50,000 shares of P10 par value common stock. It then completed these transactions.Jan. 11Issued 20,000 shares of common stock at P16 per share.Feb. 1Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets:equipment with a fair value of P50, 000; a factory building with a fair value ofP160, 000; and land with an appraised value of P270, 000.July 29Purchased 1,800 shares of common stock at P17 per share. (Use cost method.)Aug. 10Sold the 1,800 treasury shares at P14 per share.Dec. 31Decdared a PO.25 per share cash dividend on the common stock and declared thepreferred dividend. Dec. 31 Closed the Income Summary account. There was aP175, 700 net income.Instructions :(a) Record the journal entries for the transactions listed above.(b) Prepare the stockholders' equity section of PE Corporation's balance sheet as of December31, 2019.

Name: W16-5 On January 5, 2019, PE Corporation received a charter granting
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Description: W16-5 On January 5, 2019, PE Corporation received a charter granting the right to issue5,000 shares of P100 par value, 8% cumulative and nonparticipating preferred stock, and50,000 shares of P10 par value common stock. It then completed these transa

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Answered: (a) Record the journal entries for the…

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(a) Record the journal entries for the transactions listed above. (b) Prepare the stockholders' equity section of PE Corporation's balance sheet as of December 31, 2019.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.1P

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