Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 5, 2019, Phelps Corporation received a charter granting the right to 5,000 shares of $50.00 par value, 14% cumulative and nonparticipating preferred stock,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On January 5, 2019, Phelps Corporation received a charter granting the right to 5,000 shares of $50.00 par value, 14% cumulative and nonparticipating preferred stock, and 50,000 shares of $10.00 par value common stock. It then completed these transactions. Jan 8 Issued 20,000 shares of common stock at $18 per share. Feb 1 Issued to Sanchez Corp. 5,000 shares of preferred stock for the following: Equipment with a fair market value of $65,000 A factory building with a fair market value of $180,000 and, land with an appraised value of $250,000 Jul 29 Purchase 1,700 shares of common stock at $19 per share. (Use the cost method.) Aug 10 Sold the 1,500 treasury shares at $14 p er share. Dec 15 Declared 10% stock dividend for common stockholders. Stock price $58 per share. Shares are issed. Dec 31 Declared $0.25 per share cash dividend on the common stock and declared the preferred dividend. Dec 31 Closed the Income Summary account. There was a $250,700 net income. 360,000 22 Jan 8, 19 Cash Common stock Paid-in capital in excess of par-common stock 200,000 160,000 Feb 1, 19 Equipment Factory Building Land Preferred Stock PIC in excess of par preferred stock 65,000 180,000 250,000 250,000 245,000 Jul 29, 19 Treasury Stock 32,300 170 Cash 32,300 38 Aug 10, 19 Cash Retained Earnings 21,000 7,500 150 1501 28,500 1500 Treasury Stock 114,840 Dec 15, 19 Retained Earnings Common Stock PIC in excess of par 19,800 95,040 Dec 31, 19 Retained earnings 40,445.0 Dividends Payable 40.445 250,700 Dec 31, 19 Income Summary Retained Earnings 250,700 ) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2017 PHELPS CORPORATION Stockholders' Equity December 31, 2018 Capital Stock Preferred stock, Total capital stock Additional Paid-in Capital Total paid-in capital Total stockholders' equity Treasury Stock Cost Method

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

Computer Accounting With Peachtree Complete 2011

Authors: Carol Yacht, Peachtree Software

15th Edition

007811098X, 978-0078110986

More Books

Students also viewed these Accounting questions

Question

Summarize various training methods.

Answered: 1 week ago

Question

Explain the metrics for evaluating training and development.

Answered: 1 week ago

Question

Identify career planning approaches.

Answered: 1 week ago