Chapter 13 Homework Question 7, CP13-54 (book/static) Part 3 of 8 HW Score: 76.93%, 5.39 of 7 points Points: 0.22 of 1 Save After looking into debt financing through notes, mortgage, and bonds payable, Canyon Canoe Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, the balance in Common Stock on January 1, 2021 was $136,000 and included 136,000 shares of common stock issued and outstanding. (There was no Paid-In Capital in Excess of Par-Common.) Canyon Canoe Company had the following transactions in 2021: (Click the icon to view the transactions.) Read the (equirements Requirement 1. Journalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Issued 50,000 shares of $1 par value common stock for a total of $200,000. Date: Accounts and Explanation Jan. 1 Cash Common Stock-$1 Par Value Paid-In Capital in Excess of Par-Common Debit 200,000 Credit 50,000 150,000 Issued common stock at a premium Jan 10: Issued 20,000 shares of 4%, $3 par value preferred stock in exchange for land with a market value of $70,000. Date Accounts and Explanation Jan. 10 Land Preferred Stock-$3 Par Value Debit Credit 70,000 60,000 After looking into debt financing through notes, mortgage, and bonds payable, Canyon Canoe Company decides to raise additional c expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following tra Common Stock on January 1, 2021 was $136,000 and included 136,000 shares of common stock issued and outstanding. (There wa Par-Common.) Canyon Canoe Company had the following transactions in 2021: (Click the icon to view the transactions.) Read the requirements. Jan. 10 Land 5233 Preferred Stock-$3 Par Value 31331 70,000 60,000 10,000 Paid-In Capital in Excess of Par-Preferred Issued preferred stock in exchange for land. Dec. 15: Declared total cash dividends of $15,000. Date Accounts and Explanation Debit Credit Dec. 15 Cash Dividends 15,000 Dividends Payable-Preferred Dividends Payable-Common Declared a cash dividend. Requirements 1. Journalize the transactions. 2. Calculate the balance in Retained Earnings on December 31, 2021. Assume the balance on January 1, 2021 was $4,250 and net income for the year was $417,000. 3. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. There was no preferred stock issued prior to the 2021 transactions. Print Done