Please I could not answer this question, can you answer it for me and help me, p
ID: 2584920 • Letter: P
Question
Please I could not answer this question, can you answer it for me and help me, please! Questions 4-7 (of 13) E11-2 Reporting Stockholders Equity and Determining Dividend Policy LO 11- The following information applies to the questions displayed below Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed a. Issued 5,800 shares of common stock for cash at $18 per share b. Issued 1,800 shares of common stock for cash at $21 per share. References Section Break E11-2 Reporting Stockholders Equity andExplanation / Answer
PART-1)
Assets
Liabilities
Stockholders' Equity
a
Cash
104400
No effect
NE
Common stock
11600
Additional paid-in capital
92800
b
Cash
37800
No effect
NE
Common stock
3600
Additional paid-in capital
34200
PART-2)
JOURNAL ENTRIES:
Cash
104,400
Common stock
11,600
Additional paid-in capital
92,800
Cash
37,800
Common stock
3,600
Additional paid-in capital
34,200
PART-3)
Contributed Capital
Working
Common stock
15200
11600+3600
Additional paid-in capital
127000
92800+34200
Total Contributed Capital
142200
Retained earnings
100
Stockholder's equity
142300
PART-4) NO, Incentive Corporation has a balance of only $100 in retained earnings and in the absence of significant earnings, company should not dividends
Assets
Liabilities
Stockholders' Equity
a
Cash
104400
No effect
NE
Common stock
11600
Additional paid-in capital
92800
b
Cash
37800
No effect
NE
Common stock
3600
Additional paid-in capital
34200