Prepare the stockholders’ equity section of the balance sheet at December 31. (A
ID: 2526866 • Letter: P
Question
Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)
Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1
Record the issuance of 58,000 shares of common stock with a par value $10 for a price of $12 per share.
2
Record the purchase of 1,800 shares of previously issued common stock for a price of $15 per share.
3
Record the re-issuance of 900 shares of treasury stock previously purchased for a price of $15 per share and sold for $18 per share.
3.Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus sign.)
TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year.2.
Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1
Record the issuance of 58,000 shares of common stock with a par value $10 for a price of $12 per share.
2
Record the purchase of 1,800 shares of previously issued common stock for a price of $15 per share.
3
Record the re-issuance of 900 shares of treasury stock previously purchased for a price of $15 per share and sold for $18 per share.
Explanation / Answer
1)
2)
3)
Thanks
Dr. Cr. Bank Account 696,000 Share Capital Account 580,000 Share Premium Account 116,000