he 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: i) KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues $350,00 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,350,000. ii) The company sold 110,000 shares of common stock with $1 par value. iii) Issued 22,000 shares of $18 par value preferred stock. Shares were issued at par. iv) Earned net income of $850,000. v) Dividend declared and paid - $0.15 per share on common stock vi) Dividend declared and paid - $5 per share on preferred stock Using the information above and as guided: B. Prepare the owner’s equity section of the balance sheet based on the info above.
The company’s charter authorizes 1,000,000 shares of common stock and 100,000
i) KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues $350,00 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,350,000.
ii) The company sold 110,000 shares of common stock with $1 par value.
iii) Issued 22,000 shares of $18 par value preferred stock. Shares were issued at par.
iv) Earned net income of $850,000.
v) Dividend declared and paid - $0.15 per share on common stock
vi) Dividend declared and paid - $5 per share on preferred stock
Using the information above and as guided:
B. Prepare the owner’s equity section of the balance sheet based on the info above.
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