On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000shares of common stock in exchange for $150,000 cash. No other shares were issued during2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporation’smajor stockholder sold 300 shares to another stockholder for $50,000. The corporationreported net income of $37,500 for 2019.Required:Prepare the stockholders’ equity section of Mulcahy’s balance sheet at December 31, 2019.
On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000shares of common stock in exchange for $150,000 cash. No other shares were issued during2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporation’smajor stockholder sold 300 shares to another stockholder for $50,000. The corporationreported net income of $37,500 for 2019.Required:Prepare the stockholders’ equity section of Mulcahy’s balance sheet at December 31, 2019.
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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| On January 1, 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $150,000 cash. No other shares were issued during 2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporation’s major stockholder sold 300 shares to another stockholder for $50,000. The corporation reported net income of $37,500 for 2019. Required: Prepare the |
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