Assume one year later (2019) the company TT Jewelry Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making processThe 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:TT Jewelry Ltd purchased a piece of land from the original owner. In payment for the land, TT Jewelry Ltd issues $400,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1,480,000.The company sold 110,000 shares of common stock with $1 par value.Issued 24,000 shares of $14 par value preferred stock. Shares were issued at par.Earned net income of $1,000,000Dividend declared and paid - $0.15 per share on common stockDividend declared and paid - $5 per share on preferred stockUsing the information above and as guided:1. Prepare the Journal entries for the above transaction.2. Prepare the closing entries for the above transaction.3. Prepare the owner’s equity section of the balance sheet based on the info above.SHOW ALL WORKING

Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Answered: Assume one year later (2019) the…

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

See similar textbooks

Related questions

Concept explainers

Question

Assume one year later (2019) the company TT Jewelry 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

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:

TT Jewelry Ltd purchased a piece of land from the original owner. In payment for the land, TT Jewelry Ltd issues $400,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1,480,000.
The company sold 110,000 shares of common stock with $1 par value.
Issued 24,000 shares of $14 par value preferred stock. Shares were issued at par.
Earned net income of $1,000,000
Dividend declared and paid - $0.15 per share on common stock
Dividend declared and paid - $5 per share on preferred stock

Using the information above and as guided:

1. Prepare the Journal entries for the above transaction.

2. Prepare the closing entries for the above transaction.

3. Prepare the owner’s equity section of the balance sheet based on the info above.

SHOW ALL WORKING

Expert Solution

Step by step

Solved in 3 steps with 4 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