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% Preferred stock, $100 par value, 20,000 shares authorized: 6,000 shares issued and outstanding Common stock, $2 par value, 100,000 shares authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings Total Stockholders' Equity Dec. 28 Sold 1,500 treasury shares at $23 per share. Dec. 31 Closed net income of $250,000 to the Retained Earnings account. he following transactions, among others, occurred during the year: an. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $1 per share. The authorization was increased to 300,000 shares. Mar. 31 Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $97,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. une 1 Acquired equipment with a fair market value of $45,000 in exchange for 200 shares of preferred stock. Sept. 1 Acquired 12,000 shares of common stock for cash at $20 per share. Nov. 21 Issued 6,000 shares of common stock at $22 cash per share. Cep.01 Nov.21 Dec 28 equired Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. INT: Complete part b. below prior to entering any additional T-account data. Beg. un.01 Bal. Cash 0 Dec 28 Bal. 0 0 Preferred Stock 0 0 0 0 0 0 Paid-in-Capital from Treasury Stock 0 OO 0 0 0 OO 0 Mar.31 Beg. Mar.31 Nov.21 Bal. Sept.01 Dec.28 Bal. $600,000 $80,000 400,000 800,000 750,000 $2,630,000 Bonds Payable 0 Common Stock 0 0 0 0 OOO 0 0 0 0 0 OOO Treasury Stock - Common 0 0 0 0 OO 0 0 Mar.31 Paid-in-Capital in Excess of Par Value - Preferred Stock 0 Beg. Jun.01 Bal. Premium on Bonds Payable 0 0 Bal. Dec.31 Bal. OOO 0 0 Retained Earnings OOO 0 Ooo 0 0 OOO 0 Jun.01 Beg. Mar.31 Equipment 0 Paid-in-Capital in Excess of Par Value - Common Stock Nov.21 Bal. oooo 0 0 0 OOO 0

% Preferred stock, $100 par value, 20,000 shares authorized: 6,000 shares issued and outstanding Common stock, $2 par value, 100,000 shares authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings Total Stockholders' Equity Dec. 28 Sold 1,500 treasury shares at $23 per share. Dec. 31 Closed net income of $250,000 to the Retained Earnings account. he following transactions, among others, occurred during the year: an. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $1 per share. The authorization was increased to 300,000 shares. Mar. 31 Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $97,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. une 1 Acquired equipment with a fair market value of $45,000 in exchange for 200 shares of preferred stock. Sept. 1 Acquired 12,000 shares of common stock for cash at $20 per share. Nov. 21 Issued 6,000 shares of common stock at $22 cash per share. Cep.01 Nov.21 Dec 28 equired Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. INT: Complete part b. below prior to entering any additional T-account data. Beg. un.01 Bal. Cash 0 Dec 28 Bal. 0 0 Preferred Stock 0 0 0 0 0 0 Paid-in-Capital from Treasury Stock 0 OO 0 0 0 OO 0 Mar.31 Beg. Mar.31 Nov.21 Bal. Sept.01 Dec.28 Bal. $600,000 $80,000 400,000 800,000 750,000 $2,630,000 Bonds Payable 0 Common Stock 0 0 0 0 OOO 0 0 0 0 0 OOO Treasury Stock - Common 0 0 0 0 OO 0 0 Mar.31 Paid-in-Capital in Excess of Par Value - Preferred Stock 0 Beg. Jun.01 Bal. Premium on Bonds Payable 0 0 Bal. Dec.31 Bal. OOO 0 0 Retained Earnings OOO 0 Ooo 0 0 OOO 0 Jun.01 Beg. Mar.31 Equipment 0 Paid-in-Capital in Excess of Par Value - Common Stock Nov.21 Bal. oooo 0 0 0 OOO 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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he stockholders' equity of Xeltron Corporation at January 1 follows: 9 % Preferred stock, $100 par value, 20,000 shares authorized; 6,000 shares issued and outstanding Common stock, $2 par value, 100,000 shares authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings Total Stockholders' Equity he following transactions, among others, occurred during the year: Jan. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $1 per share. The authorization was increased to 300,000 shares. Mar. 31 Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $97,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. June 1 Acquired equipment with a fair market value of $45,000 in exchange for 200 shares of preferred stock. Sept. 1 Acquired 12,000 shares of common stock for cash at $20 per share. Nov. 21 Issued 6,000 shares of common stock at $22 cash per share. Dec. 28 Sold 1,500 treasury shares at $23 per share. Dec. 31 Closed net income of $250,000 to the Retained Earnings account. Sep.01 Nov.21 Dec 28 Required . Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. HINT: Complete part b. below prior to entering any additional T-account data. Beg. un.01 Bal. Cash 0 0 0 Dec 28 Bal. Preferred Stock 0 0 0 0 0 0 0 0 0 Paid-in-Capital from Treasury Stock 0 0 0 0 Mar.31 Beg Mar.31 Nov.21 Bal. $600,000 Sept.01 Dec.28 Bal. $80,000 400,000 800,000 750,000 $2,630,000 Bonds Payable 0 0 0 0 Common Stock 0 0 0 0 0 Treasury Stock - Common 0 0 0 0 0 0 Mar.31 Paid-in-Capital in Excess of Par Value - Preferred Stock 0 0 0 Beg. Jun.01 Bal Premium on Bonds Payable Bal. Dec.31 Bal. Retained Earnings 0 0 0 0 0 0 0 0 0 Jun.01 Equipment 0 Beg. Mar.31 Nov.21 Bal. Paid-in-Capital in Excess of Par Value - Common Stock 0 0 0 0 0 0 0 0 0
Transcribed Image Text:he stockholders' equity of Xeltron Corporation at January 1 follows: 9 % Preferred stock, $100 par value, 20,000 shares authorized; 6,000 shares issued and outstanding Common stock, $2 par value, 100,000 shares authorized; 40,000 shares issued and outstanding Paid-in capital in excess of par value-Preferred stock Paid-in capital in excess of par value-Common stock Retained earnings Total Stockholders' Equity he following transactions, among others, occurred during the year: Jan. 1 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $1 per share. The authorization was increased to 300,000 shares. Mar. 31 Converted $90,000 face value of convertible bonds payable (the book value of the bonds was $97,000) to common stock. Each $1,000 bond converted to 125 shares of common stock. June 1 Acquired equipment with a fair market value of $45,000 in exchange for 200 shares of preferred stock. Sept. 1 Acquired 12,000 shares of common stock for cash at $20 per share. Nov. 21 Issued 6,000 shares of common stock at $22 cash per share. Dec. 28 Sold 1,500 treasury shares at $23 per share. Dec. 31 Closed net income of $250,000 to the Retained Earnings account. Sep.01 Nov.21 Dec 28 Required . Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. HINT: Complete part b. below prior to entering any additional T-account data. Beg. un.01 Bal. Cash 0 0 0 Dec 28 Bal. Preferred Stock 0 0 0 0 0 0 0 0 0 Paid-in-Capital from Treasury Stock 0 0 0 0 Mar.31 Beg Mar.31 Nov.21 Bal. $600,000 Sept.01 Dec.28 Bal. $80,000 400,000 800,000 750,000 $2,630,000 Bonds Payable 0 0 0 0 Common Stock 0 0 0 0 0 Treasury Stock - Common 0 0 0 0 0 0 Mar.31 Paid-in-Capital in Excess of Par Value - Preferred Stock 0 0 0 Beg. Jun.01 Bal Premium on Bonds Payable Bal. Dec.31 Bal. Retained Earnings 0 0 0 0 0 0 0 0 0 Jun.01 Equipment 0 Beg. Mar.31 Nov.21 Bal. Paid-in-Capital in Excess of Par Value - Common Stock 0 0 0 0 0 0 0 0 0
. Prepare journal entries for the given transactions and post them to the T-accounts above in part a. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. General Journal Date Description Jan.01 (Memorandum) Common Stock split 2 for 1. Mar.31 Jun.01 Sept.01 Nov.21 Dec 28 Premium on Bonds Payable Common Stock To record conversion of bonds. Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment. Purchased treasury stock. Common Stock Issued common stock. Paid-in-Capital from Treasury Stock To record sale of treasury stock. # + + + + + + + $ Debit OS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Transcribed Image Text:. Prepare journal entries for the given transactions and post them to the T-accounts above in part a. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. General Journal Date Description Jan.01 (Memorandum) Common Stock split 2 for 1. Mar.31 Jun.01 Sept.01 Nov.21 Dec 28 Premium on Bonds Payable Common Stock To record conversion of bonds. Paid-in-Capital in Excess of Par Value - Preferred Stock Issued preferred stock in exchange for equipment. Purchased treasury stock. Common Stock Issued common stock. Paid-in-Capital from Treasury Stock To record sale of treasury stock. # + + + + + + + $ Debit OS 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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