Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 5, 2020, Bonita Corporation received a charter granting the night to issue 4,600 shares of $100 par value, 7% cumulative and nonparticipating preferred

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

On January 5, 2020, Bonita Corporation received a charter granting the night to issue 4,600 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 45,800 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 Issued 20,900 shares of common stock at $16 per share. Issued to Sanchez Corp. 3,700 shares of preferred stock for the following assets: equipment with a fair value of $49,900; a factory building with a fair value of $147,000; and land with an appraised value of $256,000. Purchased 2,000 shares of common stock at $15 per share. (Use cost method.) Sold the 2,000 treasury shares at $13 per share. Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $179,600 net income. Record the journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record entries in the order displayed in the problem statement. Round answers to o decimal places, e.g. $5,275.) Date Account Titles and Explanation Debit Credit V Feb. 1 Aug. 10 Prepare the stockholders' equity section of Bonita Corporation's balance sheet as of December 31, 2020. (Enter account name only and do not provide descriptive information.) BONITA CORPORATION Stockholders' Equity $ List of Accounts Problem 15-01 Bonds Payable Buildings Cash Common Stock Common Stock Dividend Distributable Debt Investments Dividends Payable Discount on Bonds Payable Equipment Equity Investments Income Summary Land Legal Fees Expense No Entry Organization Expense Paid-in Capital from Treasury Stock Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Paid-in Capital in Excess of Stated Value - Common Stock Preferred Stock Property Dividends Payable Retained Earnings Retained Earnings Appropriated for Plant Expansion Share Capital-Ordinary Share Capital-Preference Share Premium-Conversion Equity Share Premium-Ordinary Share Premium-Preference Treasury Stock Unamortized Bond Issue Costs Unrealized Holding Gain or Loss -Income

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

Interpretation And Application Of International Standards On Auditing

Authors: Steven Collings

1st Edition

0470661127, 978-0470661123

More Books

Students also viewed these Accounting questions