Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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 fist name initial. The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues 380,00 shares of common stock with a $1.00 par value. The land has been appraised at a market value of $1,500,000. (11) The company sold 150,000 shares of common stock with $1 par value. (111) Issued 23,000 shares of $16 par value preferred stock. Shares were issued at par. (1v) Earned net income of $940,000. (v) Dividend declared and paid $0.15 per share on common stock. (v1) Dividend declared and paid $5 per share on preferred stock. Using the information above and as guided: Prepare the Journal entries and closing entries for the above transaction. Prepare the owner’s equity section of the balance sheet on the info above.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6C

See similar textbooks

Related questions

Question

. Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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 fist name initial.

The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration:

KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues 380,00 shares of common stock with a $1.00 par value. The land has been appraised at a market value of $1,500,000.

(11) The company sold 150,000 shares of common stock with $1 par value.

(111) Issued 23,000 shares of $16 par value preferred stock. Shares were issued at par.

(1v) Earned net income of $940,000.

(v) Dividend declared and paid $0.15 per share on common stock.

(v1) Dividend declared and paid $5 per share on preferred stock.

Using the information above and as guided:

Prepare the Journal entries and closing entries for the above transaction.
Prepare the owner’s equity section of the balance sheet on the info above.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions