Boston Van Lines, Ltd. began operations at the beginning of the current year and engaged in the following transactions affecting the stockholders' equity section of its current balance sheet. The company has 1,000,000 shares authorized for each common and preferred stock (Click the icon to view the transactions.) 11 Read the requirements Requirement a. Prepare all journal entries required to record the transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) 1. Issued 450,000 shares of its $1 par value common stock at $66 per share. The underwriter charged a 5% fee for issuing the shares. Account Current Year (1) (2 (3 (4) 2. Issued 180,000 shares of $7.50 par value 2 % preferred stock at $123 per share. These shares were privately placed and Boston did not pay any stock issue costs. Account Current Year (5) (6) (7) (8) 3, Purchased 145.000 shares of common stock at $73 per share. Account Current Year (9) (10) (11) (12) 4a. Declared a $67,500 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) Begin by preparing the entry to record the declaration of the dividend on preferred shares. Account Current Year (13) (14) (15) (16) 4b. Declared a $67,500 dividend for the first half of the year. and the preferred shares.) (The declarations should be recorded separately for the common Now prepare the entry to record the declaration of the dividend on common shares. Account Current Year (17) (18) (19) (20) 5. Sold 70,000 of the treasury shares at $68 per share. Account Current Year (21) (22) |(23) (24) 6. Paid the cash dividends. (Prepare a compound entry to record payment of the preferred and common stock dividends.) Account Current Year (25) (26) (27) (28) 7a. Declared a $67,500 cash dividend for the second half of the year. common and the preferred shares.) (The declarations should be recorded separately for the Begin by preparing the entry to record the declaration of the dividend on preferred shares. Account Current Year (29) (30) (31) (32) 7b. Next prepare the entry to record the declaration of the dividend on common shares. Account Current Year (34) (35) (36) 8. Reported net income of $9,158,960 for the current year. |6 Account Current Year (37) (38) (39) (40) 9. Closed out all dividends declared accounts. Account Current Year (41) (42) (43) (44) Requirement b. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. Begin by posting to the relevant shareholders' equity section t-accounts. Use the transaction numbers provided before each journal entry as posting references to post each transaction to the relevant accounts, then compute the ending balance of each account. Label the ending balances with End. Bal. (For accounts with a $0 balance, select "End. Bal." and enter "0" on the normal balance side of the t-account. Abbreviations used: Additional paid-in capital.) Review the journal entries that you prepared in Requirement a APIC in Excess of Par Common Common Stock - Par (46) (48) (45) (47) (50) (49) (51) (52) Preferred Stock - Par APIC in Excess of Par - Preferred (54) (53) (55) |(56) (57) (58) (59) (60) Retained Earnings Treasury Stock (62) (61) (64) (63) (66) (65) (68) (67) (70) (69) Dividends Preferred Dividends Common (72) (71) (74) (73) (78) (75) (76) (77) (79) (80) (81) (82) Now construct the shareholders' equity section for the year-end balance sheet. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Review the ending balances of the T-accounts that you prepared in Requirement b Stockholders' Equity Balance (83) (84) (85) (86) (87) (88) Total Contributed Capital (89) Total (91) (90) Total Stockholders' Equity 1: Transactions 1. Issued 450,000 shares of its $1 par value common stock at $66 per share. The underwriter charged a 5% fee for issuing the shares. 2. Issued 180,000 shares of $7.50 par value 2% preferred stock at $123 per share. These shares were privately placed and Boston did not pay any stock issue costs. 3. Purchased 145,000 shares of common stock at $73 per share. 4. Declared a $67,500 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) 5. Sold 70,000 of the treasury shares at $68 per share. 6. Paid the cash dividends. 7. Declared a $67,500 cash dividend for the second half of the year. (The declarations should be recorded separately for the common and the preferred shares.) 8. Reported net income of $9,158,960 for the current year 9. Closed out all dividends declared accounts. 2: Requirements Prepare all journal entries required to record the transactions listed. a. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. b. Boston Van Lines, Ltd. began operations at the beginning of the current year and engaged in the following transactions affecting the stockholders' equity section of its current balance sheet. The company has 1,000,000 shares authorized for each common and preferred stock (Click the icon to view the transactions.) 11 Read the requirements Requirement a. Prepare all journal entries required to record the transactions. (Record debits first, then credits. Exclude explanations from any journal entries.) 1. Issued 450,000 shares of its $1 par value common stock at $66 per share. The underwriter charged a 5% fee for issuing the shares. Account Current Year (1) (2 (3 (4) 2. Issued 180,000 shares of $7.50 par value 2 % preferred stock at $123 per share. These shares were privately placed and Boston did not pay any stock issue costs. Account Current Year (5) (6) (7) (8) 3, Purchased 145.000 shares of common stock at $73 per share. Account Current Year (9) (10) (11) (12) 4a. Declared a $67,500 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) Begin by preparing the entry to record the declaration of the dividend on preferred shares. Account Current Year (13) (14) (15) (16) 4b. Declared a $67,500 dividend for the first half of the year. and the preferred shares.) (The declarations should be recorded separately for the common Now prepare the entry to record the declaration of the dividend on common shares. Account Current Year (17) (18) (19) (20) 5. Sold 70,000 of the treasury shares at $68 per share. Account Current Year (21) (22) |(23) (24) 6. Paid the cash dividends. (Prepare a compound entry to record payment of the preferred and common stock dividends.) Account Current Year (25) (26) (27) (28) 7a. Declared a $67,500 cash dividend for the second half of the year. common and the preferred shares.) (The declarations should be recorded separately for the Begin by preparing the entry to record the declaration of the dividend on preferred shares. Account Current Year (29) (30) (31) (32) 7b. Next prepare the entry to record the declaration of the dividend on common shares. Account Current Year (34) (35) (36) 8. Reported net income of $9,158,960 for the current year. |6 Account Current Year (37) (38) (39) (40) 9. Closed out all dividends declared accounts. Account Current Year (41) (42) (43) (44) Requirement b. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. Begin by posting to the relevant shareholders' equity section t-accounts. Use the transaction numbers provided before each journal entry as posting references to post each transaction to the relevant accounts, then compute the ending balance of each account. Label the ending balances with End. Bal. (For accounts with a $0 balance, select "End. Bal." and enter "0" on the normal balance side of the t-account. Abbreviations used: Additional paid-in capital.) Review the journal entries that you prepared in Requirement a APIC in Excess of Par Common Common Stock - Par (46) (48) (45) (47) (50) (49) (51) (52) Preferred Stock - Par APIC in Excess of Par - Preferred (54) (53) (55) |(56) (57) (58) (59) (60) Retained Earnings Treasury Stock (62) (61) (64) (63) (66) (65) (68) (67) (70) (69) Dividends Preferred Dividends Common (72) (71) (74) (73) (78) (75) (76) (77) (79) (80) (81) (82) Now construct the shareholders' equity section for the year-end balance sheet. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.) Review the ending balances of the T-accounts that you prepared in Requirement b Stockholders' Equity Balance (83) (84) (85) (86) (87) (88) Total Contributed Capital (89) Total (91) (90) Total Stockholders' Equity 1: Transactions 1. Issued 450,000 shares of its $1 par value common stock at $66 per share. The underwriter charged a 5% fee for issuing the shares. 2. Issued 180,000 shares of $7.50 par value 2% preferred stock at $123 per share. These shares were privately placed and Boston did not pay any stock issue costs. 3. Purchased 145,000 shares of common stock at $73 per share. 4. Declared a $67,500 dividend for the first half of the year. (The declarations should be recorded separately for the common and the preferred shares.) 5. Sold 70,000 of the treasury shares at $68 per share. 6. Paid the cash dividends. 7. Declared a $67,500 cash dividend for the second half of the year. (The declarations should be recorded separately for the common and the preferred shares.) 8. Reported net income of $9,158,960 for the current year 9. Closed out all dividends declared accounts. 2: Requirements Prepare all journal entries required to record the transactions listed. a. Construct the shareholders' equity section for the year-end balance sheet as well as the relevant t-accounts. b