The Business charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: VIK purchased a piece of land from the original owner. In payment for the land, VIK issue 350,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1, 350,000 The company sold 110,000 shares of common stock with $1 par value Issued 20,000 shares of $16 par value preferred stock. Shares were issued at par. Earned net income of $100,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $10 per share on preferred stock Prepare the Journal entries and closing entries for the above transaction Prepare the owner’s equity section of the balance sheet based on the info above
The Business charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: VIK purchased a piece of land from the original owner. In payment for the land, VIK issue 350,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1, 350,000 The company sold 110,000 shares of common stock with $1 par value Issued 20,000 shares of $16 par value preferred stock. Shares were issued at par. Earned net income of $100,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $10 per share on preferred stock Prepare the Journal entries and closing entries for the above transaction Prepare the owner’s equity section of the balance sheet based on the info above
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...
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The Business charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration:
- VIK purchased a piece of land from the original owner. In payment for the land, VIK issue 350,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1, 350,000
- The company sold 110,000 shares of common stock with $1 par value
- Issued 20,000 shares of $16 par value preferred stock. Shares were issued at par.
- Earned net income of $100,000
- Dividend declared and paid - $0.15 per share on common stock
- Dividend declared and paid - $10 per
share on preferred stock
- Prepare the
Journal entries and closing entries for the above transaction - Prepare the owner’s equity section of the balance sheet based on the info above
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