Skip <span id="mod_quiz_navblock_title">Ch 11 Exercises Navigation</span>Ch 11 Exercises NavigationQuestion 1Question 2Question 3Question 4Question 5This pageReturn to courseFinish attempt ... P11-2B.StateBookPrintQuestion 5Not completeMarked out of 34.00Flag questionQuestion textStockholders’ Equity: Transactions and Balance Sheet PresentationBaker Corporation was organized on July 1, with an authorization of 50,000 shares of $5 no-par value preferred stock ($5 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders’ equity occurred:July1Issued 62,000 shares of common stock at $21 cash per share. 12Issued 7,000 shares of common stock in exchange for equipment with a fair market value of $71,000. 15Issued 10,000 shares of preferred stock for cash at $40 per share. Requireda. Prepare journal entries to record the foregoing transactions.General JournalDateDescriptionDebitCreditJul.01 Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock. Jul.12 Common Stock Issued common stock for equipment. Jul.15 Issued shares of preferred stock. b. Prepare the stockholders’ equity section of the balance sheet at July 31. The net income for July is $52,000.Stockholders' Equity Paid in Capital Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Common Stock

Stockholders' equity is the amount of assets remaining in a business after all liabilities have been…

Answered: Baker Corporation was organized on July…

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter10: The Cost Of Capital

Section: Chapter Questions

Problem 1TCL: CALCULATING 3MS COST OF CAPITAL Use online resources to work on this chapters questions. Please note...

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Stockholders’ Equity: Transactions and Balance Sheet Presentation

Baker Corporation was organized on July 1, with an authorization of 50,000 shares of $5 no-par value preferred stock ($5 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders’ equity occurred:

July	1	Issued 62,000 shares of common stock at $21 cash per share.
	12	Issued 7,000 shares of common stock in exchange for equipment with a fair market value of $71,000.
	15	Issued 10,000 shares of preferred stock for cash at $40 per share.

Required

a. Prepare journal entries to record the foregoing transactions.

General Journal
Date	Description	Debit	Credit
Jul.01

	Paid-in-Capital in Excess of Par Value - Common Stock
	Issued shares of common stock.
Jul.12
	Common Stock

	Issued common stock for equipment.
Jul.15

	Issued shares of preferred stock.

b. Prepare the stockholders’ equity section of the balance sheet at July 31. The net income for July is $52,000.

Stockholders' Equity
	Paid in Capital


	Additional Paid-in-Capital
	Paid-in-Capital in Excess of Par value - Common Stock

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