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 you to prepare the company’s journal entries and statement of owner’s equity based on the following information. 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: a)KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues $380,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of$1,500,000. b)The company sold $150,000 shares of common stock with $1 par value. c)Issued 23,000 shares of $16 par value preferred stock. Shares were issued at par. d)Earned net income of $940,000 e)Dividend declared and paid - $0.15 per share on common stock f)Dividend declared and paid - $5 per share on preferred stock Using the information above: i.Prepare the journal entries and closing entries for the above transaction ii. Prepare the owner’s equity section of the balance sheet based on the info above.
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 you to prepare the company’s
The company’s charter authorizes 1,000,000 shares of common stock and 100,000
a)KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues $380,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of$1,500,000.
b)The company sold $150,000 shares of common stock with $1 par value.
c)Issued 23,000 shares of $16 par value preferred stock. Shares were issued at par.
d)Earned net income of $940,000
e)Dividend declared and paid - $0.15 per share on common stock
f)Dividend declared and paid - $5 per share on preferred stock
Using the information above:
i.Prepare the journal entries and closing entries for the above transaction
ii. Prepare the owner’s equity section of the balance sheet based on the info above.
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