Question 1 M & C Corporation charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the company had the following transactions in 2014, its first year of operations.Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued for cash at $50.00 per share.Issued 100 shares of $100 par value preferred stock. Shares were issued for cash at par.Earned net income of $95,000.Dividends of $5,000 declared and paid in cash.Required:Journalize the above transactions in the books of M&C Corporation.Prepare the stockholders' equity section of the balance sheet at December 31, 2014. Statement of Cash FlowsConsider the financial statements alongside the notes presented by Simple Things Industries and prepare the statement of cash flows for the year ended December 31, 2014. Notes Acquisition of plant asset during 2014 310,000Sale proceed from sale of plant asset 50,000Receipt for issuance of notes payable 90,000Payment for note payable 10,000Dividend paid 10,000

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: Question 1 M & C Corporation charter…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter12: Statement Of Stockholders’ Equity (stockeq)

Section: Chapter Questions

Problem 1R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...

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Question 1

M & C Corporation charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the company had the following transactions in 2014, its first year of operations.

Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued for cash at $50.00 per share.
Issued 100 shares of $100 par value preferred stock. Shares were issued for cash at par.
Earned net income of $95,000.
Dividends of $5,000 declared and paid in cash.

Required:

Journalize the above transactions in the books of M&C Corporation.
Prepare the stockholders' equity section of the balance sheet at December 31, 2014.

Statement of Cash Flows

Consider the financial statements alongside the notes presented by Simple Things Industries and prepare the statement of cash flows for the year ended December 31, 2014.

Notes
Acquisition of plant asset during 2014		310,000
Sale proceed from sale of plant asset		50,000
Receipt for issuance of notes payable		90,000
Payment for note payable		10,000
Dividend paid		10,000