Answered: P11-1B Bennis Corporation was organized…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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P11-1B Bennis Corporation was organized on January 1, 2014. It is authorized to issue
10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common
stock with a stated value of $1 per share. The following stock transactions were completed
during the first year.
Jan. 10 Issued 40,000 shares of common stock for cash at $3.60 per share.
Mar. 1 Issued 5,000 shares of preferred stock for cash at $102 per share.
May 1 Issued 90,000 shares of common stock for cash at $4 per share.
Sept. 1 Issued 10,000 shares of common stock for cash at $4.40 per share.
Nov. 1 Issued 4,000 shares of preferred stock for cash at $103 per share.
Instructions
(a) Journalize the transactions.
(b) Post to the stockholders’ equity accounts. (Use T-accounts.)
(c) Prepare the paid-in capital section of stockholders’ equity at December 31, 2014.

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