Stockholders' Equity Transactions and balance sheet Presentation The stockholders' equity accounts of Cooper Corporation at anary I follow: Common stock 150.000 chans authored 150 Sendant $150.000 Puidicata in scenarist.commons C00.000 60.000 During the year, the following transactions occurred: Sed 20.000 mon stock for 515 chers Putused 2.000 as of common stock astratory tocar la perte Mar 12 de form of the treasury shares med ry 517 nes shame y sold of the matury stock for 512 Hertha 15.000 shares o percent, 125 pred stock for cash per share These are the preferred share out of 50.000 authored Dec. 31 Gosed the net income of 120.000 to the dance Required Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the journal entry for the Dec 31 transaction but post the appropriate amount to the end Earnings account Determine the ending balances for the stockholders' equity accounts Prepare the December 31 stockholders' equity section of the balance sheet Debit Credit 300000 $ General Journal Date Description Jan.05 Cash Common Stock Paid-in-Capital in excess of Par Value - Common Stock Issued common stock Jan.18 - Purchased treasury stock. Mar.12 Treasury Stock - Common Sold treasury stock. Jul.17 > Paid-in-Capital from Treasury Stock . To record sale of treasury stock. Oct.01 > Paid-in-Capital in Excess of Par Value - Preferred Stock To record issue of preferred stock. Journal Entries T-Accounts Balance Sheets Cash Preferred Stock Ocol Bal Common Stock 150,000 Jan 05 Jan 18 Mar 12 Jul 17 Octo Bee, bal Janos Bal Paid-in-Capital in Excess of Par Value Preferred Stock Oct 01 Bal Paid-in-Capital in Excess of Par Value Common Stock Beg, bal 600,000 Jan 5 Bal Pald-in-Capital from Treasury Stock Mar 12 Jul 12 Bal Treasury Stock Retained Earnings 366,000 Jan. 18 Mar.12 Jul 17 Bal Beg bal Dec 31 Bal Do not use negative signs with your answers. Stockholders' Equity Paid in Capital $ $ Additional Paid-in-Capital Paid-in-Capital in Excess of Par value-Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital ( $ > Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity accounts of Cooper Corporation at January 1 follow: Common stock, 51 par value, 350,000 shares authorized 150,000 shares issued and outstanding $150,000 Paid in capital in excess of par value (common stock) 600,000 Retained earnings 366,000 During the year, the following transactions occurred: Jan 5 Issued 20,000 shares of common stock for 515 cash per share 18 Purchased 4,000 shares of common stock as treasury stock at $14 cash per share Mar 12 Sold one fourth of the treasury shares acquired January 18 for 517 per share, July 17 Sold 600 shares of the remaining deasury stock for 512 per share OCH 1 Issued 5,000 shares of eight percent, $25 par value preferred stock for $35 cash per share. These are the first preferred shares issued out of 50,000 authorized shares. Dec 31 Closed the net income of $170,000 to the Retained Earnings account Required Prepare journal entries to record the foregoing transactions and post to T-accounts. Do not prepare the journal entry for the Dec. 31 transaction, but post the appropriate amount to the Retained Earnings T-account. Determine the ending balances for the stockholders' equity accounts. Prepare the December 31 stockholders' equity section of the balance sheet Journal Entries T-Accounts Balance Sheets Credit General Journal Date Description Jan.05 Cash Common Stock Pald-in-Capital in Excess of Par Value - Common Stock Issued common stock. Jan 18 Debit $ 300,000 0 0 0 0 0 4 0 0 . 0 0 Purchased treasury stock. Mar.12 + 0 0 0 Treasury Stock - Common 0 0 0 0 Sold treasury stock. Jul 17 0 0 Paid-in-Capital from Treasury Stock 0 0 0 0 $ Check
