Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation

image text in transcribed
image text in transcribed
image text in transcribed
Bramble Corporation has been authorized to issue 20,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation assigned a $2.70 stated value to the common stock. At December 31, 2020, the ledger contained the following balances pertaining to stockholders' equity Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Treasury Stock (960 common shares) Paid-in Capital from Treasury Stock Retained Earnings Accumulated Other Comprehensive Income $120,000 24,500 1,004,400 ,599,600 10,560 1,440 84,500 61,000 The preferred stock was issued for land having a fair value of $144,500 All common stock issued was for cash. In November, 1,440 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 480 shares of treasury stock were sold for $14 per share. No dividends were declared in 2020 Your answer is correct. Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually (1) Issuance of preferred stock for land. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. (4) Sale of treasury stock for cash No. Account Titles and Explanation Debit Credit 1. Land Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock 245 2. Common Stock 1. Land Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Cash Paid-in Capital from Treasury Stock 1440 Treasury Stock By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts:3 of 3 used Prepare the stockholders' equity section at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.) BRAMBLE CORPORATION Balance Sheet (Partial) Prepare the stockholders' equity section at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.) BRAMBLE CORPORATION Balance Sheet (Partial)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Cost Accounting For Health Care Organizations

Authors: Steven A. Finkler

1st Edition

0834205289, 978-0834205284

More Books

Students also viewed these Accounting questions