Whispering Winds Corporation is authorized to issue 22,500 shares of $50 par value, 10% preferred stock and 130,000 shares of$5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances.Preferred Stock (10,500 shares)$525,000Paid-in Capital in Excess of Par-Preferred Stock73,500Common Stock (68,500 shares)342,500Paid-in Capital in Excess of Par-Common Stock700,000Retained Earnings310,000During 2022, the following transactions occurred.Feb.1Issued 2,000 shares of preferred stock for land having a fair value of $125,000.Mar.1Issued 1,300 shares of preferred stock for cash at $70 per share.July1Issued 16,000 shares of common stock for cash at $7 per share.Sept.1Issued 400 shares of preferred stock for a patent. The asking price of the patent was $28,000. Market price for thepreferred stock was $70 and the fair value for the patent was indeterminable.Dec.1Issued 8,000 shares of common stock for cash at $7.50 per share.Dec. 31Net income for the year was $260,000. No dividends were declared.Journalize the transactions and the closing entry for net income. (List all debit entries before credit entries. Record journal entries inthe order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

In account, transactions are the exchange of products, services, or coffers between two or further…

Whispering Winds Corporation is authorized to issue 22,500 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances. Preferred Stock (10,500 shares) $525,000 Paid-in Capital in Excess of Par-Preferred Stock 73,500 Common Stock (68,500 shares) 342,500 Paid-in Capital in Excess of Par-Common Stock 700,000 Retained Earnings 310,000

Whispering Winds Corporation is authorized to issue 22,500 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2022, the ledger contained the following stockholders' equity balances. Preferred Stock (10,500 shares) $525,000 Paid-in Capital in Excess of Par-Preferred Stock 73,500 Common Stock (68,500 shares) 342,500 Paid-in Capital in Excess of Par-Common Stock 700,000 Retained Earnings 310,000

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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