The stockholders' equity accounts of Whispering Company have the following balances on December 31, 2025. Common stock, $10 par, 304,000 shares issued and outstanding Paid-in capital in excess of par-common stock Retained earnings Shares of Whispering Company stock are currently selling on the Midwest Stock Exchange at $40. Prepare the appropriate journal entries for each of the following cases. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) a. b. C. $3,040,000 1,290,000 5,340,000 A stock dividend of 7% is (1) declared and (2) issued. A stock dividend of 100% is (1) declared and (2) issued. A 2-for-1 stock split is (1) declared and (2) issued.
Q: Assume that a relatively new company you and you group members are involved with has presented you…
A: The accounting process starts from recording the day to day transactions in the general journal. The…
Q: . If X is a domestic corporation, how much is the taxable income and income tax due in the…
A: If X is a domestic corporation, how much is the taxable income and income tax due in the Philippines…
Q: You have been called upon to help Sarah Singer with her newly established graphic design business.…
A: Journal entries recording is the first step in accounting process, under this atleast one account is…
Q: How does using the accounting support fee to fund the FASB create more independence than using…
A: Answer:- FASB:- To establish and advance Generally Accepted Accounting Principles in the U.S. in the…
Q: Following are the current asset and current liability sections of the balance sheets for Freedom…
A: Current ratio identifies the ability of the company to use its liquidity to pay off its short term…
Q: Total assets Total liabilities Stockholders' equity Net income Debt to assets ratio Return on equity…
A: Debts to Assets ratio shows how potential is the company to repay debt with the available assets. =…
Q: Requirement 2. Compute the total costs of the units (gallons) (a) completed and transferred out to…
A: Cost of production is total of material cost and conversion cost. Conversion cost is total of labor…
Q: The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost…
A: Variable cost can be calculated as change in total cost divided by change in volume under the high…
Q: Crane Real Estate received a check for $27540 on July 1 which represents a 6 month advance payment…
A: INTRODUCTION: Rental Revenue is defined as, with respect to any Borrower for any period, the gross…
Q: During 2022, Ms. Cheerful, a resident of Alberta and has a taxable income of $45,200. Calculate his…
A: When an individual or an organization earns income by performing business activities or through…
Q: Statement of cash flows G Corp had the following activities in 2008: Sale of land $230,000…
A: Solution We are provided with the following information Investing activities consists of sale of…
Q: Liam's Computer Servicing, Inc., a service company that provides installation services for computer…
A: Journal entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials…
A: The manufacturing costs include the direct costs and overhead applied costs. The overhead is applied…
Q: On April 2 a corporation purchased for cash 7,000 shares of its own $10 par common stock at $28 per…
A: Apr, 2 Treasury Stock $196,000 Cash $196,000
Q: 3. Prepare a classified balance sheet at May 31. Include Retained Earnings with a balance of zero.…
A: A balance sheet ia a financial statements which represents a firm's total assets and it's total…
Q: Lightfoot Inc., a software development firm, has stock outstanding as follows: 20,000 shares of…
A: DIVIDEND DISTRIBUTION A dividend is a distribution of profits by a corporation to its…
Q: Introduction to Financial Accounting Question 8. current financial year end after all entries have…
A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: Home Demo reported the following results. Sales $ 95 billion Net income $ 8 billion Average total…
A: Return on assets (ROA), a financial metric, gauges a company's profitability in relation to its…
Q: Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory…
A: First in, first out, or FIFO, is a system that relies on the premise that inventory will be sold in…
Q: In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid…
A: Given in the question: Annuity purchased for = $150,000 During the year 2021, Sally has received the…
Q: Units Sold Sales in Dollars Total Variable Expenses Per Unit C/M Total Fixed Expenses Net Operating…
A: Lets understand the basics. For solving this question, we need to understand below formula. Per unit…
Q: Post to the stockholders' equity accounts. (Post entries in the order of journal entries presented…
A: Shareholders Equity is one of the important section of balance sheet of the business. It shows…
Q: Douglass Minerals mines ore and then processes it into other products. At the end of the mining…
A: Joint Cost is the cost which incurred in before the split off point and there are methods for…
Q: A Filipino contractor in the USA plans to purchase a new office building costing P P150,000 annually…
A: There are two ways to acquire the assets one is buying or other is leasing. In leasing you do not…
Q: Sunland Corporation, a private company, began operations on January 1, 2020. During its first three…
A: Introduction: A statement of retained earnings is a part financial statement that shows the changes…
Q: What is the rxample of activity based costing?
A: The term "activity-based costing," also referred to as "ABC," describes a technique for calculating…
Q: Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000…
A: A special revenue fund is defined as a type of fund set up for the purpose of using the money for…
Q: M & G TV and Appliance Store is a small company that has hired you to perform some management…
A: Estimated total costs will be the sum total of total expected variable costs and total fixed costs.…
Q: Net income for the current year was $92,150. Depreciation expense was $26,500. The balances of the…
A: Cash flow statement shows the cash inflow and cash outflow due to the operating, financing, and…
Q: Leon's Furniture Limited is one of Canada's largest retailers, selling a wide range of merchandise,…
A: Financial Position :— It is one of the type of financial statements that shows asset, liabilities…
Q: What is the yield on a corporate bond with a $1000 face value purchased at a discount price of $875,…
A: Yield is the percentage representation that shows interest earned by the company n the total…
Q: Juliet opened an Office Cleaning Service company on January 1, 2021. During the year she had the…
A: Notes payable are the liabilities noted in the business records when borrowing is made from outside…
Q: Swifty Limited reported the following for 2023: sales revenue, $920,000; cost of sales, $742,000;…
A: Answer:- Statement of stockholder's equity meaning:- An accounting document that is included in a…
Q: A partial listing of costs incurred at Archut Corporation during September appears below: Direct…
A: Manufacturing overhead is a type of operating expense that is unrelated to a facility's production.…
Q: The book value for year 2, (in $)
A: Double-declining depreciation method also known as accelerated method. In this method assets are…
Q: ANALYZE, THINK, COMMUNICATE ATC 8-1 Business Applications Case Static versus flexible budget…
A: Performance evaluation means the process of assessing or reviewing the performance of employees in…
Q: The following information applies to the questions displayed below.] On December 31, Hawkin's…
A: Income statement: The income statement is the financial statement that shows the financial…
Q: a. Compute return on assets at year-end for 2007, 2009, 2012, 2014, and 2016. (Use $28,000 in the…
A: Given in the question: Asset Balance as on January 2007 Total Assets $5,56,000…
Q: Marigold Corporation was organized on January 1, 2025. It is authorized to issue 11,000 shares of…
A: Journal Entries - Journal Entries are the records of the transactions entered into by the company…
Q: Can you provide samples/examples of tasks for developing the costing and profitability model for a…
A: Introduction The net present value (NPV) is the present value of outflows and inflows of cash over a…
Q: Record the effects of each item using a journal entry. (If Required" in the first account field
A: S.No Transaction Dr/Cr Paticulars Debit ($) Credit ($) 1 a Dr Cash 40000 Cr Common Stock…
Q: required journal entries f
A: Payment of dividend and conversion of dividend to bonds are major decisions in any firm. As such,…
Q: PROBLEM 2-17A Earnings Quality The following is an excerpt from a quarterly earnings announcement by…
A: Financial Ratios: Financial ratios are comparison tools that are relationships established from a…
Q: Transactions for the Oleg Thorn Company for the month of June are presented as follows. June 1 2 3…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: Presented below is information which relates to Sandhill Ltd., a Canadian private company. Net loss…
A: Retained earnings refer to the portion of the profit that is remain left after paying all the direct…
Q: Cash collected from clients Cash disbursements; Salaries paid to employees for services rendered…
A: As per the information given in the question, utilities cost incurred in year 1 is $37000 and actual…
Q: Using T-accounts, enter the beginning balances in the general ledger as of April 30, 2017. Cash…
A: Journal entries recording is the first step in accounting cycle process. After this, recorded…
Q: You are an auditor of the company ABC. During the audit of the accounting statements it is found…
A: Introduction A person that has the ability to analyze financial information, verify their integrity,…
Q: Friar Company discloses the following information for the year ended October 31, 2021. Sales Sales…
A: Friar company Income Statement For the year…
Q: Nico Manufacturing Company applies process costing in the manufacture of its best-seller product,…
A: Process costing is specifically applicable for the manufacturing entities where a final product is…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.Anoka Company reported the following selected items in the shareholders equity section of its balance sheet on December 31, 2019, and 2020: In addition, it listed the following selected pretax items as a December 31, 2019 and 2020: The preferred shares were outstanding during all of 2019 and 2020; annual dividends were declared and paid in each year. During 2019, 2,000 common shares were sold for cash on October 4. During 2020, a 20% stock dividend was declared and issued in early May. At the end of 2019 and 2020, the common stock was selling for 25.75 and 32.20, respectively. The company is subject to a 30% income tax rate. Required: 1. Prepare the comparative 2019 and 2020 income statements (multiple-step), and the related note that would appear in Anokas 2020 annual report. 2. Next Level Compute the price/earnings ratio for 2020. How does this compare to 2019? Why is it different?Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.
- On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.Calculating the Number of Shares Issued Castalia Inc. issued shares of its $0.80 par value common stock on September 4, 2019, for $8 per share. The Additional Paid-In Capital-Common Stock account was credited for 5612,000 in the journal entry to record this transaction. Required: How many shares were issued on September 4, 2019?Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
- Calculating the Number of Shares Issued Castanet Inc. issued shares of its $1. 50 par value common stock on November 9,2019, for $13 per share. In recording the issuance of the stock, Castanet credited the Additional Paid-In Capital- Common Stock account for $416,300. Required: How many shares were issued on November 9, 2019?Stockholders' Equity section of balance sheet The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Prepare the Stockholders Equity section of the balance sheet as of June 30. Eighty thousand shares of common stock are authorized, and 9,000 shares have been reacquired.Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 0 par common stock at 0, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a held- to-maturitv long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 545, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method, q. Accrued interest for three months on the Dream Inc. bonds purchased in (1). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions Journalize the selected transactions. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016. Income statement data: Advertising expense 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense -office buildings and equipment 30,000 Depreciation expensestore buildings and equipment 100,000 Dividend revenue 4,500 Gain on sale of investment 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7.500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable 194,300 Accounts receivable 545,000 Accumulated depreciationoffice buildings and equipment 1,580,000 Accumulated depreciationstore buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Available for sale investments (at cost) 260,130 Bonds payable. 5%. due 2024 500,000 Cash 246,000 Common stock, 20 par (400,000 shares authorized; 100,000 shares issued. 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000 Income tax payable 44,000 Interest receivable 1,125 Investment in Pinkberry Co. stock (equity method) 1,009,300 Investment in Dream Inc. bonds (long term) 90,000 Merchandise inventory [December 31, 2016). at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4.320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over parcommon stock 886,800 Excess of issue price over parpreferred stock 150,000 Preferred 5% stock. 80 par (30,000 shares authorized; 20,000 shares issued] 1,600,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2016 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 shares of common stock at cost of 33 per share) 178,200 Unrealized gain (loss) on available for sale investments (6,500) Valuation allowance for available for sale investments (6,500)
- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4,000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 375. The bonds are classified as a heldtomaturity long-term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0.60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. q. Accrued interest for three months on the Dream Inc. bonds purchased in (l). r. Pinkberry Co. recorded total earnings of 240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2016. c. Prepare a balance sheet in report form as of December 31, 2016.The controller of Red Lake Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation on the companys income statement for the year ended September 30, 2020. As currently calculated, Red Lakes net income is 540,000 for fiscal year 2019-2020. Your working papers disclose the following opening balances and transactions in the companys capital stock accounts during the year: 1. Common stock (at October 1, 2019, stated value 10, authorized 300,000 shares; effective December 1, 2019, stated value 5, authorized 600,000 shares): Balance, October 1, 2019issued and outstanding 60,000 shares December 1, 201960,000 shares issued in a 2-for-l stock split December 1, 2019280,000 shares (stated value 5) issued at 39 per share 2. Treasury stockcommon: March 3, 2020purchased 40,000 shares at 38 per share April 1, 2020sold 40,000 shares at 40 per share 3. Noncompensatory stock purchase warrants, Series A (initially, each warrant was exchangeable with 60 for 1 common share; effective December 1, 2019, each warrant became exchangeable for 2 common shares at 30 per share): October 1, 201925,000 warrants issued at 6 each 4. Noncompensatory stock purchase warrants, Series B (each warrant is exchangeable with 40 for 1 common share): April 1, 202020,000 warrants authorized and issued at 10 each 5. First mortgage bonds, 5%, due 2029 (nonconvertible; priced to yield 5% when issued): Balance October 1, 2019authorized, issued, and outstandingthe face value of 1,400,000 6. Convertible debentures, 7%, due 2036 (initially, each 1,000 bond was convertible at any time until maturity into 20 common shares; effective December 1, 2019, the conversion rate became 40 shares for each bond): October 1, 2019authorized and issued at their face value (no premium or discount) of 2,400,000 The following table shows the average market prices for the companys securities during 2019-2020: Adjusted for stock split Required: Prepare a schedule computing: 1. the basic earnings per share 2. the diluted earnings per share that should be presented on Red Lakes income statement for the year ended September 30, 2020 A supporting schedule computing the numbers of shares to be used in these computations should also be prepared. Assume an income tax rate of 30%.Gray Company lists the following shareholders equity items on its December 31, 2018, balance sheet: The following stock transactions occurred during 2019: Required: 1. Prepare journal entries to record the preceding transactions. 2. Prepare the December 31, 2019, shareholders equity section (assume that 2019 net income was 225,000).