Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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 grouped according to your fist name initial. The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: The company sold 155,000 shares of common stock with $1 par value. KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues 410,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,560,000. Issued 25,000 shares of $$19 par value preferred stock. Shares were issued at par. Earned net income of $$880,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock Using the information above and as guided: 1.Prepare the Journal entries and closing entries for the above transaction 2.Prepare the owner’s equity section of the balance sheet based on the info above.
Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. They have asked each student from your accounting course to prepare the company’s
The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration:
The company sold 155,000 shares of common stock with $1 par value.
KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues
410,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,560,000.
Issued 25,000 shares of $$19 par value preferred stock. Shares were issued at par.
Earned net income of $$880,000
Dividend declared and paid - $0.15 per share on common stock
Dividend declared and paid - $5 per
Using the information above and as guided:
1.Prepare the Journal entries and closing entries for the above transaction
2.Prepare the owner’s equity section of the
Step by step
Solved in 3 steps with 4 images
