Question
Choctaw Co. completed the following transactions in Year 1, the first year of operation. Issued 27,000 shares of $12 par common stock for $12 per
Choctaw Co. completed the following transactions in Year 1, the first year of operation.
- Issued 27,000 shares of $12 par common stock for $12 per share.
- Issued 3,700 shares of $20 stated value preferred stock for $20 per share.
- Purchased 1,700 shares of common stock as treasury stock for $14 per share.
- Declared a $2,700 cash dividend on preferred stock.
- Sold 1,100 shares of treasury stock for $16 per share.
- Paid $2,700 cash for the preferred dividend declared in Event 4.
- Earned cash revenues of $92,000 and incurred cash expenses of $48,000.
- Appropriated $8,700 of retained earnings.
Required
a. Organize the transaction in accounts under an accounting equation. b. Prepare a balance sheet as of December 31, Year 1.
- Required A
Organize the transaction in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding input needed.)
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Required B
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
