MK Designs 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: i) MK Designs purchased a piece of land from the original owner. In payment for the land, MK Designs issues 390,000 shares of common stock with a $1.00 par value. The land has been appraised at a market value of $1,520,000 ii) The company sold 140,000 shares of common stock with a $1 par value. iii) Issued 26,000 shares of $22 par value preferred stock. Shares were issued at par. iv) Earned net income of $950,000 v) Dividend declared and paid - $0.15 per share on common stock vi) Dividend declared and paid - $5 per share on preferred stock Prepare the journal entries and closing entries for the above transaction. Prepare the owner’s equity section of the balance sheet based on the info above.
MK Designs 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: i) MK Designs purchased a piece of land from the original owner. In payment for the land, MK Designs issues 390,000 shares of common stock with a $1.00 par value. The land has been appraised at a market value of $1,520,000 ii) The company sold 140,000 shares of common stock with a $1 par value. iii) Issued 26,000 shares of $22 par value preferred stock. Shares were issued at par. iv) Earned net income of $950,000 v) Dividend declared and paid - $0.15 per share on common stock vi) Dividend declared and paid - $5 per share on preferred stock Prepare the journal entries and closing entries for the above transaction. Prepare the owner’s equity section of the balance sheet based on the info above.
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
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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MK Designs
The company’s charter authorizes 1,000,000 shares of common stock and 100,000
i) MK Designs purchased a piece of land from the original owner. In payment for the land, MK Designs issues 390,000 shares of common stock with a $1.00 par value. The land has been appraised at a market value of $1,520,000
ii) The company sold 140,000 shares of common stock with a $1 par value.
iii) Issued 26,000 shares of $22 par value preferred stock. Shares were issued at par.
iv) Earned net income of $950,000
v) Dividend declared and paid - $0.15 per share on common stock
vi) Dividend declared and paid - $5 per share on preferred stock
- Prepare the
journal entries and closing entries for the above transaction. - Prepare the owner’s equity section of the balance sheet based on the info above.
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