Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Martinez Corporation is authorized to issue 21.500 shares of S 50 par value, 10% preferred stock and 120.000 shares of $5 par value common stock

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Martinez Corporation is authorized to issue 21.500 shares of S 50 par value, 10% preferred stock and 120.000 shares of $5 par value common stock On January 1, 2022. the ledger contained the following stockholders' equity balances. $575,000 73,500 Preferred Stock( 11500 shares) Paid-in Capital in Excess of Par-Preferred Stock Common Stock (68,500 shares) Paid-in Capital in Excess of Par-Common Stock Retained Earnings 342.500 660,000 320.000 During 2022, the following transactions occurred. Feb 1 Mar 1 July 1 Sept. Issued 1.900 shares of preferred stock for land having a fair value of $ 130,000. Issued 1.500 shares of preferred stock for cash at $ 70 per share Issued 15.000 shares of common stock for cash at $8 per share Issued 550 shares of preferred stock for a patent. The asking price of the patent was $29.000. Market price for the preferred stock was 567 and the fair value for the patent was indeterminable Issued 7500 shares of common stock for cash at $8.50 per share Net income for the year was $ 258.000. No dividends were declared 1 Dec 1 Dec 31 Journalize the transactions and the closing entry for net income. (List alldehit entries before credit entries Record journal entries in the order presented in the problem. Credit account titles are automatically Indented when amount is entered. Do not indent manually) te Credit Debit Account Titles and Explanation 130000 Land 95000 Preferred Stock 35000 Pale in Capital in Excess of Par-Preferred Stock Cash 105000 3000 Palden Capital Excess of Par-Preferred Stock 75000 Preferred Stock cash 120000 Pald Captain Excess of Par Common ock 25000 Common Stock 79000 iParkete 29000 Preferred Stock Pan Capleness of a Preferred Sock 1500 Cash 63150 Palden Call to Par-Common Stock 26250 Common Stock 37300 Income 256000 and Earning Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts (Post entries in the order of journal entries presented in the previous part) Preferred Stock Bal Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings Prepare a stockholders equity section at December 31, 2022. (Enter the account name only and do not provide the descriptive Information provided in the question) MARTINEZ CORPORATION Balance Sheet (Partial) For the Year Ended December 31, 2022 S $

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

Question

What is the Malcolm Baldrige National Quality Award?

Answered: 1 week ago