I only need part b. PLEASE prepare the stockholder equity section in the correct
ID: 2530688 • Letter: I
Question
I only need part b.
PLEASE prepare the stockholder equity section in the correct format, exactly as seen in the picture below:
Exercise:
Early in the year Bill Barnes and several friends organized a corporation called Barnes Communications, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10% cumulative preferred stock and 400,000 shares of $2 par value common stock. The following transactions (among others) occurred during the year:
Jan. 6 Issued for cash 20,000 shares of common stock at $14 per share. The shares were issued to Barnes and 10 other investors.
Jan. 7 Issued an additional 500 shares of common stock to Barnes in exchange for his services in organizing the corporation. The stockholders agreed that these services were worth $7,000.
Jan. 12 Issued 2,500 shares of preferred stock for cash of $250,000.
June 4 Acquired land as a building site in exchange for 15,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was be valued for purposes of this transaction at $15 per share.
Nov. 15 The first annual dividend of $10 per share was declared on the preferred stock to be paid December 20.
Dec. 20 Paid the cash dividend declared on November 15.
Dec. 31 After the financial statements were prepared, the net income for the year was $147,200.
b. Prepare the stockholders’ equity section of the Barnes Communications, Inc. balance sheet at December 31, 2016.
Family Health Care, P.C. Statement of Stockholders' Equity For the Month Ended November 30, 20Y5 Common Retained Stock Earnings Total 6,000 $3,320 9,320 5,000 6,390 6,390 (1,200) (1200) 58,510 $19,510 5,000 $11,000Explanation / Answer
Barnes Communication,inc
Statement of Stock Equity
for the month ended 31 DEC,2016 Common Stock Retained Earnings Total
Balance in the beginning - - -
Common Stock issue 762000 762000
Net income 147200 147200
Dividend (25000) (25000)
Balance on Dec31,2016 762000 122200 884200
Working notes: Stock issued for cash 20000 shares @14 280000
For services taken 7000
preferred stock issued 250000
issued as a price for asset15000 shares@14 210000
Additional capital 15000 Shares@1 15000
762000