Pickering Stores is authorized to issue 11,000 shares of common stock. During a two-month period, Pickering completed

Question:

Pickering Stores is authorized to issue 11,000 shares of common stock. During a two-month period, Pickering completed these stock transactions:

Jan 23 Issued 1,000 shares of $6.00 par common stock for cash of $14.00 per share.
Feb 12 Received inventory with a market value of $11,000 and equipment with market value of $44,000 for 3,800 shares of the $6.00 par common stock.

Requirements

1. Journalize the transactions.

2. Prepare the stockholders’ equity section of Pickering’s balance sheet for the transactions. The company’s Retained Earnings account has a balance of $41,000.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...

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