In January 20xx, the Jones Corporation was organized and authorized to issue 2,000,000 shares of no-par common

Question:

In January 20xx, the Jones Corporation was organized and authorized to issue 2,000,000 shares of no-par common stock and 50,000 shares of 5 percent, $50 par value, noncumulative preferred stock. The stock-related transactions for the first year's operations were as follows:

Required
1. For each of the above transactions, enter in the blanks provided the account numbers and dollar amounts (as shown in the example) for the account(s) debited and credited. The account numbers are listed below.
110 Cash...................................................312 Additional Paid-in Capital
120 Land ..................................................313 Paid-in Capital, Treasury Stock
121 Building .............................................340 Retained Earnings
220 Dividends Payable .................................341 Dividends
305 Preferred Stock .....................................350 Treasury Stock, Common
310 Common Stock .....................................510 Start-up and Organization Costs
2. User Insight: Why is the stockholders' equity section of the balance sheet an important consideration in analyzing the performance of a company?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...