Account Particulars |Cash (100000*30) Common Stock (100000*0.6) Additional paid in capital common stock |(To record issue 100000 common stock shares @30 per share Date Debit ($) Credit ($) 3,000,000 60,000 2,940,000 Organisational Costs (14000*100) Preferred Stock (To record the issue of preferred stock for organisational costs) 1,400,000 1,400,000 Land Building Common Stock (260000*0.6) Additional paid in capital common stock |(To record issue of 260000 common stock shares in exchange for Land & Building) 650,000 500,000 156,000 994,000 Income Summary Retained Earnings 900,000 900,000 (To record close of net income to retained earnings account) Dividend Expense - Common Stock (360000*2) Dividend Expense - Preferred Stock (14000*100*5%) Cash (To record the dividend paid) 720,000 70,000 790,000 Retained Earnings Dividend Expense - Common Stock Dividend Expense - Preferred Stock 790,000 720,000 70,000 |(To record close of dividend account to retained earnings)
Account Particulars |Cash (100000*30) Common Stock (100000*0.6) Additional paid in capital common stock |(To record issue 100000 common stock shares @30 per share Date Debit ($) Credit ($) 3,000,000 60,000 2,940,000 Organisational Costs (14000*100) Preferred Stock (To record the issue of preferred stock for organisational costs) 1,400,000 1,400,000 Land Building Common Stock (260000*0.6) Additional paid in capital common stock |(To record issue of 260000 common stock shares in exchange for Land & Building) 650,000 500,000 156,000 994,000 Income Summary Retained Earnings 900,000 900,000 (To record close of net income to retained earnings account) Dividend Expense - Common Stock (360000*2) Dividend Expense - Preferred Stock (14000*100*5%) Cash (To record the dividend paid) 720,000 70,000 790,000 Retained Earnings Dividend Expense - Common Stock Dividend Expense - Preferred Stock 790,000 720,000 70,000 |(To record close of dividend account to retained earnings)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Attached is the company details and journal that was created. Using this information, now prepare the:
-
Stockholders equity section of thebalance sheet at December 31, 2021. The following information must be clearly stated/shown:- information on par values,
- the number of shares authorized and issued where necessary.
- the sub total for the total paid in capital.
Retained earnings .- total stockholders’ equity.
Transcribed Image Text:Journal Entries
Account Particulars
Cash (100000*30)
Common Stock (100000*0.6)
Additional paid in capital common stock
(To record issue 100000 common stock shares @30 per
|share
Date
Debit ($)
Credit ($)
3,000,000
60,000
2,940,000
Organisational Costs (14000*100)
Preferred Stock
(To record the issue of preferred stock for organisational
costs)
1,400,000
1,400,000
Land
650,000
Building
Common Stock (260000*0.6)
Additional paid in capital common stock
(To record issue of 260000 common stock shares in exchange
|for Land & Building)
500,000
156,000
994,000
Income Summary
Retained Earnings
900,000
900,000
(To record close of net income to retained earnings account)
Dividend Expense - Common Stock (360000*2)
Dividend Expense - Preferred Stock (14000*100*5%)
720,000
70,000
Cash
790,000
(To record the dividend paid)
Retained Earnings
Dividend Expense - Common Stock
Dividend Expense - Preferred Stock
790,000
720,000
70,000
(To record close of dividend account to retained earnings)
Transcribed Image Text:2. The company is desirous of comparing serval financial transactions and possible outcomes to assist in guiding its
decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as
Osbourne Corporation. The company's charter will authorize 1,000,000 shares of common stock and 400,000,
$100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to
prepare the company's journal entries and statement of owner's equity based on the following information which is
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