FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Choctaw Co. completed the following transactions in Year 1, the first year of operation:
1. Issued 33,000 shares of $10 par common stock for $10 per share.
2. Issued 4,300 shares of $20 stated value preferred stock for $20 per share.
3. Purchased 2,300 shares of common stock as treasury stock for $12 per share.
4. Declared a $3,300 cash dividend on preferred stock.
5. Sold 1,000 shares of treasury stock for $14 per share.
6. Paid $3,300 cash for the preferred dividend declared in Event 4.
7. Earned cash revenues of $104,000 and incurred cash expenses of $54,000.
8. Appropriated $9,300 of retained earnings.
Required
a. Organize the transaction in accounts under an accounting equation.
b. Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1.
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Transcribed Image Text:Choctaw Co. completed the following transactions in Year 1, the first year of operation: 1. Issued 33,000 shares of $10 par common stock for $10 per share. 2. Issued 4,300 shares of $20 stated value preferred stock for $20 per share. 3. Purchased 2,300 shares of common stock as treasury stock for $12 per share. 4. Declared a $3,300 cash dividend on preferred stock. 5. Sold 1,000 shares of treasury stock for $14 per share. 6. Paid $3,300 cash for the preferred dividend declared in Event 4. 7. Earned cash revenues of $104,000 and incurred cash expenses of $54,000. 8. Appropriated $9,300 of retained earnings. Required a. Organize the transaction in accounts under an accounting equation. b. Prepare the stockholders' equity section of the balance sheet as of December 31, Year 1.
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