The stockholders’ equity accounts of Willis Corporation at January 1 appear below: 8 Percent preferred stock, $10 par value, 50,000 shares authorized; 6,800 shares issued and outstanding $68,000 Common stock, $10 par value, 200,000 shares authorized; 50,000 shares issued and outstanding 500,000 Paid-in capital in excess of par value—Preferred stock 68,000 Paid-in capital in excess of par value—Common stock 200,000 Retained earnings 270,000 During the year, the following transactions occurred: Jan. 10 Issued 35,000 shares of common stock for $18 cash per share. 23 Purchased 10,000 shares of common stock as treasury stock at $19 per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 per share. July 15 Issued 3,500 shares of preferred stock in exchange for equipment with a fair market value of $128,000. Nov. 15 Sold 1,000 of the treasury shares acquired January 23 for $24 per share. Dec. 31 Closed the net income of $59,000 to the Retained Earnings account. Required Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders’ equity accounts. Prepare the December 31 stockholders’ equity section of the balance sheet.
The stockholders’ equity accounts of Willis Corporation at January 1 appear below: 8 Percent preferred stock, $10 par value, 50,000 shares authorized; 6,800 shares issued and outstanding $68,000 Common stock, $10 par value, 200,000 shares authorized; 50,000 shares issued and outstanding 500,000 Paid-in capital in excess of par value—Preferred stock 68,000 Paid-in capital in excess of par value—Common stock 200,000 Retained earnings 270,000 During the year, the following transactions occurred: Jan. 10 Issued 35,000 shares of common stock for $18 cash per share. 23 Purchased 10,000 shares of common stock as treasury stock at $19 per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 per share. July 15 Issued 3,500 shares of preferred stock in exchange for equipment with a fair market value of $128,000. Nov. 15 Sold 1,000 of the treasury shares acquired January 23 for $24 per share. Dec. 31 Closed the net income of $59,000 to the Retained Earnings account. Required Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders’ equity accounts. Prepare the December 31 stockholders’ equity section of the balance sheet.
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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Question
The
8 Percent |
|
6,800 shares issued and outstanding | $68,000 |
Common stock, $10 par value, 200,000 shares authorized; | |
50,000 shares issued and outstanding | 500,000 |
Paid-in capital in excess of par value—Preferred stock | 68,000 |
Paid-in capital in excess of par value—Common stock | 200,000 |
Retained earnings | 270,000 |
During the year, the following transactions occurred:
Jan. | 10 | Issued 35,000 shares of common stock for $18 cash per share. |
23 | Purchased 10,000 shares of common stock as |
|
Mar. | 14 | Sold one-half of the treasury shares acquired January 23 for $21 per share. |
July | 15 | Issued 3,500 shares of preferred stock in exchange for equipment with a fair market value of $128,000. |
Nov. | 15 | Sold 1,000 of the treasury shares acquired January 23 for $24 per share. |
Dec. | 31 | Closed the net income of $59,000 to the Retained Earnings account. |
Required
-
Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the
journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders’ equity accounts. - Prepare the December 31 stockholders’ equity section of the balance sheet.
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