BusinessCourse My Subscriptions Alexis Solis Return to course Stockholders' Equity: Transactions and Balance Sheet Presentation The stockholders' equity accounts of Willis Corporation at January 1 appear below: 8 Percent preferred stock, $10 par value, 50,000 shares authorized; 6,800 shares issued and outstanding $68,000 Common stock, $10 par value, 200,000 shares authorized; 50,000 shares issued and outstanding 500,000 Paid-in capital in excess of par value-Preferred stock 68,000 Paid-in capital in excess of par value-Common stock 200,000 Retained earnings 270,000 During the year, the following transactions occurred: 10 Issued 35,000 shares of common stock for $18 cash per share. Jan. 23 Purchased 10,000 shares of common stock as treasury stock at $19 per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 per share. 15 Issued 3,500 shares of preferred stock in exchange for equipment with a fair market value of $128,000. July 15 Sold 1,000 of the treasury shares acquired January 23 for $24 per share. Nov. Dec. 31 Closed the net income of $59,000 to the Retained Earnings account. Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances HINT: Complete part b. below prior to entering T-account data. Preferred Stock Cash Common Stock 630,000 0 0 Jan.10 Beg. Beg. 500,000 Jan.23 0 190,000 Jul.15 0 35,000 0 350,000 Jan.10 105,000 Mar, 14 0 35,000 Bal. 0 Bal 150,000 0 24,000 0 Nov.15 Paid-in-Capital in Excess of Par Value- Common Stock Equipment Paid-in-Capital in Excess of Par Value - Preferred Stock Support BusinessCourse My Subscriptions Alexis Solis Return to course During the year, the following transactions occurred: 10 Issued 35,000 shares of common stock for $18 cash per share. Jan. 23 Purchased 10,000 shares of common stock as treasury stock at $19 per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 per share. July 15 Issued 3,500 shares of preferred stock in exchange for equipment with a fair market value of $128,000. 15 Sold 1,000 of the treasury shares acquired January 23 for $24 per share. Nov. Dec. 31 Closed the net income of $59,000 to the Retained Earnings account. Required a. Set up T-accounts for the stockholders' equity accounts as of the beginning of the year and enter the January 1 balances. HINT: Complete part b. below prior to entering T-account data. Cash Preferred Stock Common Stock 630,000 0 Beg. 0 0 500,000 0 Jan.10 Beg. Jan.23 0 190,000 Jul.15 0 35,000 0 350,000 Jan.10 0 Mar.14 105,000 Bal 0 35,000 Bal 150,000 0 24,000 0 Nov.15 Paid-in-Capital in Excess of Par Value- Common Stock Equipment Paid-in-Capital in Excess of Par Value - Preferred Stock Jul.15 93,000 0 0 0 0 Beg. Beg. Jul.15 0 0 Jan.10 0 0 Bal Bal. 0 0 0 Retained Earnings Paid-in-Capital from Treasury Stock Treasury Stock 0 0 Bal, 0 0 Mar.14 Jan.23 Nov.15 0 0 0 0 0 0 Mar.14 Dec.31 Nov,15 0 0 Bal. Bal. 0 0 0 0 Bal. 0 0 Support