The company is desirous of comparing serval financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 80,000 shares of common stock. Stock has par value of $0.50 per share and was issued at $30.00 per share.Issued 12,000 shares of preferred stock at par value as payment in exchange for legal services.Exchanged 220,000 shares of common stock for land with an appraised value of $600,000.00 and a building with an appraised value of $350,000.00.Earned Net income $820,000.00.Paid dividends to preferred shareholders as well as $2 per share to common stockholders.Using the info above and as a guide:2. Prepare the journal entries with narrations to record the following:The issuances of stock.Close out net income to retained earnings.Dividend paid.Close out dividend to retained earnings.2B. Prepare Osbourne Corporation Stockholders equity section of the balance sheet at December 31, 2021. The following information must be clearly stated/shown:information on par values,the number of shares authorized and issued where necessary.the sub total for the total paid in capital.Retained earnings.total stockholders’ equity. 66.7%CCCRT+,白2. The company is desirous of comparing serval financial transactions and possibleoutcomes to assist in guiding its decision-making process. It is assumed that thecompany will be formed on January 1, 2021 and registered as OsbourneCorporation. The company's charter will authorize 1,000,000 shares of commonstock and 400,000, $100 par value, 5% cumulative preferred stock. They haveasked each student from your accounting course to prepare the company'sjoumal entries and statement of owner's equity based on the followinginformation.Issued 80,000 shares of common stock. Stock has par value of $0.50 pershare and was issued at $30.00 per share.Issued 12,000 shares of preferred stock at par value as payment inexchange for legal services.Exchanged 220,000 shares of common stock for land with an appraisedvalue of $600,000.00 and a building with an appraised value of$350,000.00.Eamed Net income $820,000.00.Paid dividends to preferred shareholders as well as $2 per share tocommon stockholders.Using the info above and as a guide:A. Prepare the journal entries with narrations to record the following:The issuances of stock.Close out net income to retained earnings.Dividend paid.Close out dividend to retained eamings.B. Prepare Osbourne Corporation Stockholders equity section of the balance sheetat December 31, 2021. The following information must be clearly stated/shown:information on par values,the number of shares authorized and issued where necessary.the sub total for the total paid in capital.Retained earnings.total stockholders' equity.

The stockholder’s equity section is prepared to record the capital investment or other retained…

Answered: The company is desirous of comparing…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...

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The company is desirous of comparing serval financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information.

Issued 80,000 shares of common stock. Stock has par value of $0.50 per share and was issued at $30.00 per share.
Issued 12,000 shares of preferred stock at par value as payment in exchange for legal services.
Exchanged 220,000 shares of common stock for land with an appraised value of $600,000.00 and a building with an appraised value of $350,000.00.
Earned Net income $820,000.00.
Paid dividends to preferred shareholders as well as $2 per share to common stockholders.

Using the info above and as a guide:

2. Prepare the journal entries with narrations to record the following:

The issuances of stock.
Close out net income to retained earnings.
Dividend paid.
Close out dividend to retained earnings.

2B. Prepare Osbourne Corporation Stockholders equity section of the balance sheet at December 31, 2021. The following information must be clearly stated/shown:

information on par values,
the number of shares authorized and issued where necessary.
the sub total for the total paid in capital.
Retained earnings.
total stockholders’ equity.

66.7%
CCCRT
+,
白
2. The company is desirous of comparing serval financial transactions and possible
outcomes to assist in guiding its decision-making process. It is assumed that the
company will be formed on January 1, 2021 and registered as Osbourne
Corporation. The company's charter will authorize 1,000,000 shares of common
stock and 400,000, $100 par value, 5% cumulative preferred stock. They have
asked each student from your accounting course to prepare the company's
joumal entries and statement of owner's equity based on the following
information.
Issued 80,000 shares of common stock. Stock has par value of $0.50 per
share and was issued at $30.00 per share.
Issued 12,000 shares of preferred stock at par value as payment in
exchange for legal services.
Exchanged 220,000 shares of common stock for land with an appraised
value of $600,000.00 and a building with an appraised value of
$350,000.00.
Eamed Net income $820,000.00.
Paid dividends to preferred shareholders as well as $2 per share to
common stockholders.
Using the info above and as a guide:
A. Prepare the journal entries with narrations to record the following:
The issuances of stock.
Close out net income to retained earnings.
Dividend paid.
Close out dividend to retained eamings.
B. Prepare Osbourne Corporation Stockholders equity section of the balance sheet
at December 31, 2021. The following information must be clearly stated/shown:
information on par values,
the number of shares authorized and issued where necessary.
the sub total for the total paid in capital.
Retained earnings.
total stockholders' equity.

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