North Wind Aviation received its charter during January authorizing the following capital stock: Preferred stock: 8 percent, par $10, authorized 20,000 shares. Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: Issued a total of 35,000 shares of the common stock for $20 per share. Issued 10,000 shares of the preferred stock at $21 per share. Issued 2,500 shares of the common stock at $25 per share and 1,000 shares of the preferred stock at $21. Net income for the first year was $43,000, but no dividends were declared. Required: Prepare the stockholders’ equity section of the balance sheet at December 31

Q: Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 400,000 shares of…

A: b) Stockholders' Equity   Preferred stock (5000*$30) $ 150,000 Common stock…

Q: Montana Company was authorized to issue 80,000 shares of common stock. The company had issued 27,000…

A: Calculate the number of shares outstanding as follows: Outstanding shares = Issued shares - Treasury…

Q: Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1…

A:

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 460,000 shares of $9 par…

A: Introduction: The shareholders' equity section of the balance sheet shows the stockholders' wealth.…

Q: Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $100 par…

A: Journal entries: Date Account title and explanation Debit Credit Aug. 22 Cash [2,000 x $105 ]…

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $11 par…

A:

Q: Smart Corp. was organized on Jan. 1 with authorization of 10,000 shares of $5 preferred stock, $100…

A: The entry for preferred stock issued   Date Particular Debit ($) Credit ($) Dec 31 Cash 20,000…

Q: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Eacha nd…

Q: Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its fırst…

A: Journal Entries Date Particulars LF Debit ($) Credit ($) March 1 Cash / Bank (40,000 x 9.75)…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: Shares refer to the market security that the company issue to raise funds from the market by…

Q: MacKenzie Mining Corporation is authorized to 5,000,000 shares of $1 par value common stock. In its…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 320,000 shares of $10 par…

A: Common shares (Transaction 1)=Number of shares×Par value=20,000×$10=$200,000

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 470,000 shares of $10 par…

A: Any amount paid in excess of the par value of share goes to Paid-in Capital in excess of Par.

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 420,000 shares of $11 par…

A: The stockholders' equity section record the total investment and retained earnings that belong to…

Q: Cole Corporation was organized on January 1, Year 1. The company was authorized to issue 100,000…

A: Retained earnings = Net Income - Dividend paid = $60,000 - $30,000 = $30,000

Q: Retro Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000…

A: Preferred Stock = No. of shares x Par value per share = 7,000 shares x $100 = $700,000

Q: On January 1, Sweeney Corporation had 40,000 shares of $10 par value common stock issued and…

A: We have the following information: On January 1, Sweeney Corporation had 40,000 shares of $10 par…

Q: opper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $100 par…

A: Journal Entries: Journal entries are the building blocks of accounting, which is the act of…

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 430,000 shares of $9 par…

A: Total face value of Common stock issued = No. of shares issued x Par value per share = (21000+46000)…

Q: On September 10th, Grape Theory issued 25,000 shares of Common Stock for Cash, with a Par Value of…

A: When the shares are issued at a higher price than the face value, Are Issued at Premium.

Q: MacKenzie Mining Corporation is authorized to 5,000,000 shares of $1 par value common stock. In its…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Eastport Incorporated was organized on June 5, Year 1. It was authorized to issue 420,000 shares of…

A: When shares ( common or preferred ) are issued at more than par value, it results in additional paid…

Q: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first…

A: A Journal is made to record all the business transactions in chronological order. It is the first…

Q: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first…

A: • Whenever Common Stock shares are allotted in cash at an amount above its par value, the additional…

Q: Corporation’s capital stock transactions for the month of January are summarized below: Jan. 1…

A: Journal is the primary books of accounts where monetary transactions recorded in the chronological…

Q: Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: Wonder Sales is authorized to issue 100,000 shares of 2%, $100 par preferred stock and 1,000,000…

A: Paid in capital excess of par- preferred stock on January 2 nd = 5000 shares ×$10 = $50000

Q: Inside Incorporated was issued a charter on January 15 authorizing the following capital stock:…

A: Stockholders' equity refers  to the resources staying in a business once all liabilities have been…

Q: On September 10th, Orange Theory issued 25,000 shares of Common Stock for Cash, with a Par Value of…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for the…

Q: Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par…

A: The question asks for accounting for stockholders' equity in the company's books.  The journal…

Q: On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding.…

A: Treasury stock: Treaseury stock are the shares which are bought back by the company from the open…

Q: On May 1, Foress Corporation incorporated and authorized 211,000 preferred shares and an unlimited…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: n January 1, Vermont Corporation had 41,000 shares of $12 par value common stock issued and…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first…

A: Journal entry is the primary step to record transactions in the books of accounts. The total of…

Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800…

A: Any excess received for issue of shares other than the par value goes to Paid-in Capital in Excess…

Q: The company was organized on January 1, Year 1. The firm was authorized to issue 500,000 shares of…

A: The dividend is paid to the shareholders from the retained earnings of the business. The treasury…

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 310,000 shares of $8 par…

A: Stockholders' equity indicates the overall investment balance of the stockholders. It includes…

Q: Autumn Corporation was organized in August. It is authorized to issue 100,000 shares of $ 100 par…

A: The journal keeps the record for day to day transactions of the business. The shares issued at…

Q: When Wisconsin Corporation was formed on January 1, the corporate charter provided for 86,000 shares…

A:

Q: The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, Vermont Corporation had 46,400 shares of $9 par value common stock issued and…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first…

A: Shares can be referred to as the small denominations of the share capital of a company. The shares…

Q: Required:   Prepare journal entries to record the preceding treasury stock transactions for West…

A: Under the cost method, the treasury stock is recorded at the repurchased cost. When treasury stock…

Q: Bramble Corporation is authorized to issue both preferred and common stock. The par value of the…

A: Solution: Preferred stock Date Explanation Ref. Debit Credit Balance 1-Feb     $1,050,000.00…

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 400,000 shares of $12 par…

A: The balance sheet shows the financial position of the company that includes the assets, liabilities,…

Q: Inside Incorporated was issued a charter on January 15 authorizing the following capital stock:…

A: Any excess cash other than the par value received from the issue of shares goes to Paid-in Capital…

Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…

A: When an event occurs in the business and it can be measured and expressed in terms of money, it…

Q: The Vogel and Wallis Corporation is authorized to issue 15,000 shares of 10%, $50 par value…

A: 1. AMOUNT OF PREFERRED STOCK : = $5,000 X $55  = $275,000   2. AMOUNT OF COMMON STOCK : = $16,000 X…

Q: Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 380,000 shares of $11 par…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Copper Corporation was organized in May. It is authorized to issue 50,000,000 shares of $200 par…

A: A firm may issue common stock and preferred stock for raising finance. The excess amount paid over…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.