Stockholders’ Equity: Transactions and Balance Sheet Presentation Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par value preferred stock ($4 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders’ equity occurred: July 1 Issued 31,000 shares of common stock at $17 cash per share. 12 Issued 3,500 shares of common stock in exchange for equipment with a fair market value of $63,000. 15 Issued 5,000 shares of preferred stock for cash at $44 per share. Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Debit Credit Jul.01 Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock. Jul.12 Common Stock Issued common stock for equipment. Jul.15 Issued shares of preferred stock. b. Prepare the stockholders’ equity section of the balance sheet at July 31. The net income for July is $38,000. Stockholders' Equity Paid in Capital Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Common Stock Save AnswersFinish attempt ...

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

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Stockholders’ Equity: Transactions and Balance Sheet Presentation

Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par value preferred stock ($4 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders’ equity occurred:

July	1	Issued 31,000 shares of common stock at $17 cash per share.
	12	Issued 3,500 shares of common stock in exchange for equipment with a fair market value of $63,000.
	15	Issued 5,000 shares of preferred stock for cash at $44 per share.

Required

a. Prepare journal entries to record the foregoing transactions.

General Journal
Date	Description	Debit	Credit
Jul.01

	Paid-in-Capital in Excess of Par Value - Common Stock
	Issued shares of common stock.
Jul.12
	Common Stock

	Issued common stock for equipment.
Jul.15

	Issued shares of preferred stock.

b. Prepare the stockholders’ equity section of the balance sheet at July 31. The net income for July is $38,000.

Stockholders' Equity
	Paid in Capital


	Additional Paid-in-Capital
	Paid-in-Capital in Excess of Par value - Common Stock

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