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Fox Corporation had the fölloWing Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 shares issued and outstanding, cumulative, nonparticipating $400,000 10,000 Paid in Capital in Excess of Par - Preferred Common Stock, $10 par, 1,000,000 shares authorized, 450,000 shares issued and outstanding Paid in Capital in Excess of Par- Common Total Paid in Capital Accumulated Other Comprehensive Income 4,500,000 9.000.000 13,910,000 Unrealized Gain on Available for Sale Securities (bonds) 120,000 6.400.000 $20,430,000 Retained Earnings Total Stockholders' Equity Fox completed the following chronological transactions during 2022: a. Sold 10,000 shares of common stock at $36 per share in cash. b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share. c. Collected the full subscription price on 800 shares in part "b." and issued the shares. d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them. Fox uses the cost method. e. Resold 2,000 shares in part "d." at $37 per share in cash f. Resold another 3,000 shares in part "d." at $34 per share in cash g. The Available for Sale Securities which were bonds decreased in value by $6,000 this year. Ignore any tax issues related to this increase. h. Fox declared and paid $50,000 of cash dividends during the year. i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year. Prepare the closing entries at the end of the year in summary format. NSTRUCTIONS: 1. Prepare journal entries for the above events 2. Prepare the updated stockholders' equity section of the balance sheet in good form on December 31, 2022, including the effects of the entries above.

Fox Corporation had the fölloWing Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 shares issued and outstanding, cumulative, nonparticipating $400,000 10,000 Paid in Capital in Excess of Par - Preferred Common Stock, $10 par, 1,000,000 shares authorized, 450,000 shares issued and outstanding Paid in Capital in Excess of Par- Common Total Paid in Capital Accumulated Other Comprehensive Income 4,500,000 9.000.000 13,910,000 Unrealized Gain on Available for Sale Securities (bonds) 120,000 6.400.000 $20,430,000 Retained Earnings Total Stockholders' Equity Fox completed the following chronological transactions during 2022: a. Sold 10,000 shares of common stock at $36 per share in cash. b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share. c. Collected the full subscription price on 800 shares in part "b." and issued the shares. d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them. Fox uses the cost method. e. Resold 2,000 shares in part "d." at $37 per share in cash f. Resold another 3,000 shares in part "d." at $34 per share in cash g. The Available for Sale Securities which were bonds decreased in value by $6,000 this year. Ignore any tax issues related to this increase. h. Fox declared and paid $50,000 of cash dividends during the year. i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year. Prepare the closing entries at the end of the year in summary format. NSTRUCTIONS: 1. Prepare journal entries for the above events 2. Prepare the updated stockholders' equity section of the balance sheet in good form on December 31, 2022, including the effects of the entries above.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...
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Fox Corporation had the following stockholders' equity amounts on January 1, 2022: Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 shares issued and outstanding, cumulative, nonparticipating $400,000 10,000 Paid in Capital in Excess of Par – Preferred Common Stock, $10 par, 1,000,000 shares authorized, 450,000 shares issued and outstanding Paid in Capital in Excess of Par Common Total Paid in Capital Accumulated Other Comprehensive Income 4,500,000 9.000.000 13,910,000 120,000 00.000 $20,430,000 Unrealized Gain on Available for Sale Securities (bonds) Retained Earnings Total Stockholders' Equity Fox completed the following chronological transactions during 2022: a. Sold 10,000 shares of common stock at $36 per share in cash. b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share. c. Collected the full subscription price on 800 shares in part "b." and issued the shares. d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them. Fox uses the cost method. e. Resold 2,000 shares in part "d." at $37 per share in cash f. Resold another 3,000 shares in part "d." at $34 per share in cash g. The Available for Sale Securities which were bonds decreased in value by $6,000 this year. Ignore any tax issues related to this increase. h. Fox declared and paid $50,000 of cash dividends during the year. i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year. Prepare the closing entries at the end of the year in summary format. INSTRUCTIONS: 1. Prepare journal entries for the above events 2. Prepare the updated stockholders' equity section of the balance sheet in good form on December 31, 2022, including the effects of the entries above.
Transcribed Image Text:Fox Corporation had the following stockholders' equity amounts on January 1, 2022: Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 shares issued and outstanding, cumulative, nonparticipating $400,000 10,000 Paid in Capital in Excess of Par – Preferred Common Stock, $10 par, 1,000,000 shares authorized, 450,000 shares issued and outstanding Paid in Capital in Excess of Par Common Total Paid in Capital Accumulated Other Comprehensive Income 4,500,000 9.000.000 13,910,000 120,000 00.000 $20,430,000 Unrealized Gain on Available for Sale Securities (bonds) Retained Earnings Total Stockholders' Equity Fox completed the following chronological transactions during 2022: a. Sold 10,000 shares of common stock at $36 per share in cash. b. Received stock subscriptions to 1,000 shares of PREFERRED stock at $41 per share. c. Collected the full subscription price on 800 shares in part "b." and issued the shares. d. Purchased 6,000 shares of common stock at $34 per share in cash and plan to resell them. Fox uses the cost method. e. Resold 2,000 shares in part "d." at $37 per share in cash f. Resold another 3,000 shares in part "d." at $34 per share in cash g. The Available for Sale Securities which were bonds decreased in value by $6,000 this year. Ignore any tax issues related to this increase. h. Fox declared and paid $50,000 of cash dividends during the year. i. Fox earned $3,000,000 of revenues and reported $2,200,000 of expenses for the year. Prepare the closing entries at the end of the year in summary format. INSTRUCTIONS: 1. Prepare journal entries for the above events 2. Prepare the updated stockholders' equity section of the balance sheet in good form on December 31, 2022, including the effects of the entries above.
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