Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 5, 2022, Phelps Corporation received a charter granting the right to issue 100,000 shares of $30.00 par value, 10% cumulative and nonparticipating preferred
On January 5, 2022, Phelps Corporation | ||||||
received a charter granting the right to issue | 100,000 | shares of | $30.00 | par value, | ||
10% | cumulative and nonparticipating preferred stock, and | 50,000 | shares of | |||
$5.00 | par value common stock. It then completed these transactions. | |||||
Jan 8 | Issued | 30,000 | shares of common stock at | $20 | per share. | |
Feb 1 | Issued to Sanchez Corp. | 4,500 | shares of preferred stock for the following: | |||
Equipment with a fair market value of | $85,000 | |||||
A factory building with a fair market value of | $240,000 | |||||
and, land with an appraised value of | $175,000 | |||||
Jul 29 | Purchased | 1,850 | shares of common stock at | $40 | per share. | |
(Use the cost method.) | ||||||
Aug 10 | Sold the | 1,500 | treasury shares at | $34 | per share. | |
Dec 15 | Declared a | 12% | stock dividend | for common | stockholders. | Stock price |
is | $53 | per share. | Shares are | issed. | ||
Dec 31 | Declared a | $1.20 | per share cash dividend on the common stock and | |||
declared the preferred dividend. | ||||||
Dec 31 | Closed the Income Summary account. There was a | $1,453,200 | net income. |
\begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Treasury Stock-Cost Method Equity Transactions (b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2022. PHELPS CORPORATION Stockholders' Equity December 31, 2022 Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started