Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mar 2 ABC Corporation is authorized by its article to issue 200000 shares. The preferred share dividend is 4% of the par value of the

image text in transcribed
Mar 2 ABC Corporation is authorized by its article to issue 200000 shares. The preferred share dividend is 4% of the par value of the preferred shares [ Par = $150). The company is authorized 150,000 common shares but it has issued only 75000 common shares at the beginning of the year.. The table below shows the transactions that occurred during the year 2019 Year 2019 Jan 1 Retained Earning is $46500 Jan 5 Issued 18000 common shares at $8 per share Paid the promoters $ 25,500 in kind ( 500 common shares and 200 preferred shares) Mar 30 Paid suppliers $4250 in kind (1000 common shares) Issued 20000 common shares in exchange for a equipment valued at $72000 and land valued at $100,000 and purchased building for 120,000 April 30 in cash May 31 Depreciated the equipment for $12,000 June 30 Sold 10000 common shares for $95,000 August 31 Sold 5000 preferred shares for cash $35 per share. Sept 10 Board of directors declared cash dividend of $0.90 to common shareholders and also declared dividend for preferred shares October 2 Purchased supplies for $7600 in cash Dec 31 Paid the dividend both to common shareholder and preferred shareholders December 31 Closed the account with $62,000 balance in the income summary To the Retained earnings Remember that preferred dividend = % x par value REQUIRED (A) Journalize the transactions (B) Make a statement of earnings. The company had a balance of $32000 for last year (C) Give the equity section of the balance sheet

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

Connect For Data Analytics For Accounting

Authors: Author

2nd Edition

1264152000, 9781264152001

More Books

Students also viewed these Accounting questions