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Comprehensive Stockholders' Equity Transactions and Stockholders' Equity P4. Kraft Unlimited, Ic., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par, $5 stated value com- mon stock on July 1, 2014. Stock-related transactions for Kraft Unlimited follow. Issued 10,000 shares of common stock at $11 per share. Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company. Issued 1,000 shares of preferred stock at par value for cash. Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record July 1 1 10 the land at the market value of the stock. Aug. 2 Purchased 1,500 shares of its common stock at $13 per share. Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. 10 12 Date of record for cash dividends. 22 Paid cash dividends. REQUIRED 1. Prepare journal entries to record these transactions. 2. Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August 31, 2014. Net income for July was zero and August was $11,500.

Comprehensive Stockholders' Equity Transactions and Stockholders' Equity P4. Kraft Unlimited, Ic., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par, $5 stated value com- mon stock on July 1, 2014. Stock-related transactions for Kraft Unlimited follow. Issued 10,000 shares of common stock at $11 per share. Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company. Issued 1,000 shares of preferred stock at par value for cash. Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record July 1 1 10 the land at the market value of the stock. Aug. 2 Purchased 1,500 shares of its common stock at $13 per share. Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. 10 12 Date of record for cash dividends. 22 Paid cash dividends. REQUIRED 1. Prepare journal entries to record these transactions. 2. Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August 31, 2014. Net income for July was zero and August was $11,500.

Financial Accounting: The Impact on Decision Makers
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 11.6E
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In Principles of Accounting

12th Edition
Belverd E. + 5 others
Publisher: Cengage Learning
ISBN: 9781133593102
 
Question 4P in Chapter 13 has not been answered yet. Could it please be answered.

Thank you very much.
Comprehensive Stockholders' Equity Transactions and Stockholders' Equity P4. Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par, $5 stated value com- mon stock on July 1, 2014. Stock-related transactions for Kraft Unlimited follow. Issued 10,000 shares of common stock at $11 per share. Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company. Issued 1,000 shares of preferred stock at par value for cash. Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record July 1 1 10 the land at the market value of the stock. Aug. 2 Purchased 1,500 shares of its common stock at $13 per share. 10 Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. 12 Date of record for cash dividends. 22 Paid cash dividends. REQUIRED 1. Prepare journal entries to record these transactions. 2. Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August 31, 2014. Net income for July was zero and August was $11,500.
Transcribed Image Text:Comprehensive Stockholders' Equity Transactions and Stockholders' Equity P4. Kraft Unlimited, Inc., was organized and authorized to issue 5,000 shares of $100 par value, 9 percent preferred stock and 50,000 shares of no par, $5 stated value com- mon stock on July 1, 2014. Stock-related transactions for Kraft Unlimited follow. Issued 10,000 shares of common stock at $11 per share. Issued 500 shares of common stock at $11 per share for services rendered in connection with the organization of the company. Issued 1,000 shares of preferred stock at par value for cash. Issued 2,500 shares of common stock for land on which the asking price was $35,000. Market value of the stock was $12. Management wishes to record July 1 1 10 the land at the market value of the stock. Aug. 2 Purchased 1,500 shares of its common stock at $13 per share. 10 Declared a cash dividend for one month on the outstanding preferred stock and $0.02 per share on common stock outstanding, payable on August 22 to stockholders of record on August 12. 12 Date of record for cash dividends. 22 Paid cash dividends. REQUIRED 1. Prepare journal entries to record these transactions. 2. Prepare the stockholders' equity section of Kraft's balance sheet as it would appear on August 31, 2014. Net income for July was zero and August was $11,500.
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