Ballard Corporation received its corporate charter on January 2, 2013. The charter authorized the following classes of capital stock: Preferred stock, $100 par value, 10% cumulative, 50,000 shares Common stock, $5 par value, 500,000 shares. During 2013, the following transactions occurred: Jan. 4 Issued 5,000 shares of common stock to each of the three incorporators at $20 per share. Cash was received in full from two of the incorporators; the third incorporator received common stock for legal services he performed for the corporation. 18 Sold 6,000 shares of preferred stock for $105 per share. Apг. 6 Sold 60,000 shares of common stock for $26 per share. Aug. 10 Issued 12,000 shares of common stock in exchange for land. The market value of the common stock on that date was $30 per share, and the appraised value of the land was $380,000. Oct. 12 Declared the annual dividend on the preferred stock. Nov. 15 Paid the preferred stock dividend. Dec. 31 Closed the $186,000 credit balance in the Income Summary account. 31 Closed the balance in the Dividend Declared account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Prepare journal entries to record the transactions
Prepare the stockholders’ equity section of the December 31, 2013 and balancesheet.

Ballard Corporation received its corporate charter on January 2, 2013. The charter
authorized the following classes of capital stock:
Preferred stock, $100 par value, 10% cumulative, 50,000 shares Common stock, $5 par
value, 500,000 shares. During 2013, the following transactions occurred:
Jan. 4
Issued 5,000 shares of common stock to each of the three
incorporators at $20 per share. Cash was received in full from two
of the incorporators; the third incorporator received common stock
for legal services he performed for the corporation.
18
Sold 6,000 shares of preferred stock for $105 per share.
Aprг.
Sold 60,000 shares of common stock for $26 per share.
Aug. 10
Issued 12,000 shares of common stock in exchange for land. The
market value of the common stock on that date was $30 per share,
and the appraised value of the land was $380,000.
Oct. 12
Declared the annual dividend on the preferred stock.
Nov. 15
Paid the preferred stock dividend.
Dec. 31
Closed the $186,000 credit balance in the Income Summary account.
31
Closed the balance in the Dividend Declared account.
Transcribed Image Text:Ballard Corporation received its corporate charter on January 2, 2013. The charter authorized the following classes of capital stock: Preferred stock, $100 par value, 10% cumulative, 50,000 shares Common stock, $5 par value, 500,000 shares. During 2013, the following transactions occurred: Jan. 4 Issued 5,000 shares of common stock to each of the three incorporators at $20 per share. Cash was received in full from two of the incorporators; the third incorporator received common stock for legal services he performed for the corporation. 18 Sold 6,000 shares of preferred stock for $105 per share. Aprг. Sold 60,000 shares of common stock for $26 per share. Aug. 10 Issued 12,000 shares of common stock in exchange for land. The market value of the common stock on that date was $30 per share, and the appraised value of the land was $380,000. Oct. 12 Declared the annual dividend on the preferred stock. Nov. 15 Paid the preferred stock dividend. Dec. 31 Closed the $186,000 credit balance in the Income Summary account. 31 Closed the balance in the Dividend Declared account.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for stockholder's equity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education