Question
All Things Archery Corporation was incorporated on January 1 for the purpose of becoming the premier distributor of all things archery. The corporate charter authorized
All Things Archery Corporation was incorporated on January 1 for the purpose of becoming the premier distributor of all things archery. The corporate charter authorized the following stock:
Common stock, $1 par value; 10,000 shares Preferred stock, 5% noncumulative, $50 par value; 1,000 shares The following transactions occurred during the year:
A. Janurary 1- issued a total of 4,000 shares of $1 par value common stock for cash at $10 per share. B. February 1- issued 500 shares of preferred stock for cash at $75 per share. C. July 1- purchased 200 shares of common stock that had been issued earlier. All things archery corporation paid the stockholder $12 per share for the stock, to be held in the treasury
D. September 1: issued 50 shares of the common treasury stock at $12 per share E. December 1 - the board of directors declared a cash dividend on the preferred stock, payable on december 22, to stockholder of records as of december 1
f. December 22 paid the cash dividends declared on December 1.
Record these transactions in the general journal and prepare the stockholders equity section of the balance sheet for All Things Archery Corporation as of December 31. Assume the balance in the Retained Earnings after closing entries is $31,500.
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